Someone shared malicious swiping techniques on the forum, relying on low-priced open orders combined with reverse operations to achieve zero-cost arbitrage over a few months. It sounds like many people are playing this game, with a fast in-and-out rhythm. However, the issues exposed behind this are far more complex than just making a small profit.

We were full of expectations for the first generation of stablecoins back in the day, thinking it could bring stability to DeFi. But what happened? To participate in decentralized finance, we ended up having to place all our trust on the balance sheets of a few centralized institutions. The sense of contradiction in this is particularly strong.

It's frustrating to think about. Is the reserve fund real? Has it been diverted for other uses? Audit reports are always delayed. Once institutions face legal freezes, policy attacks, or problems with their own operations, the entire system gets stuck. You claim to be decentralized, yet the core relies on an opaque "black box treasury", isn't that contradictory? What was the original intention of DeFi? It was to break the trust in intermediaries, yet now we are forced to trust a centralized treasury.

So, is there a way to break the deadlock? The approach of USDD is different. Instead of relying on promises and audit reports to maintain trust, it is better to fundamentally change the rules of the game.

The first transformation is: from trusting quarterly reports to trusting on-chain data. The excess collateral asset reserves of USDD are mostly placed on the blockchain, accessible at any time. Want to verify? Just open the block explorer, all the data is there. When it comes to transparency, the data will speak for itself. No longer relying on an institution waving the banner of "audit approved", but allowing anyone to verify the reserve address, collateral ratio, and these real numbers at any time.

The second transformation is: from trusting a single manager to trusting a distributed network. The issuance and regulation of USDD is not held by a single institution, but is executed by a decentralized autonomous organization or a set of protocol nodes with predefined rules. The space for malicious manipulation by individuals has been minimized. No single entity can act at will.

The significance of these two transformations lies in: changing the foundation of trust from "I promise" to "mechanism proof." One is a verbal guarantee, and the other is code and data. Which is more reliable, one can see for themselves.