The previous stereotype about USD1 was that its rapid growth was due to its deep ties with Binance, especially on BSC. But who would’ve thought that on Solana, its supply chain grew 5x in just two months? Looking at the data, since January 20 this year, USD1’s growth on Solana has skyrocketed, with most of the trading volume happening on Raydium, paired with wSOL. So, the reasons behind USD1’s rapid growth on Solana are pretty clear now. On January 19, Solana’s lending platform Kamino launched USD1. Users who deposited USD1 to provide liquidity could essentially "double dip," earning WLFI and KMNO token rewards. As a result, a large number of users, eager to get their hands on USD1, started collateralizing assets like Sol to borrow USD1, which they then deposited into KMNO to earn yields. However, static deposits on Kamino earning passive interest aren’t exactly healthy for USD1’s usage. So, they needed a way to get USD1 moving dynamically. That’s where WLFI and Raydium came in with similar "double-dip" incentives. A large portion of the borrowed USD1 flowed into Raydium, primarily into the wSOL trading pair, which had the deepest liquidity. In essence, WLFI replicated its Binance playbook on Solana. First, they accumulated a large amount of USD1 through deposit-based yield farming, completing the first phase. Then, instead of letting USD1 sit idle and earn interest, they drove trading volume to put those USD1 to work. This strategy is indeed well-established and clearly thought out, but it hinges on WLFI’s deep pockets and its ability to continuously provide subsidies.