Yesterday's release of OUSD caused a significant drop for Circle. From a personal perspective, let's talk about the OUSD model and our thoughts on Circle. Advantages of OUSD: 1) Zero cost casting redemption has a certain attractiveness to institutions due to its cost advantage; 2) The sharing of profits from stablecoin reserves (no longer exclusive to the issuer) provides strong motivation for partners to promote and has the potential to create a flywheel effect; 3）visa、master、 Backed by 140+traditional financial, payment, and cryptocurrency giants such as BlackRock, Stripe, and even Coinbase, providing instant trust, liquidity, and distribution capabilities; 4) Neutral collaboration reduces the risk of a single issuer and attracts developers and enterprises pursuing "open infrastructure", which can be considered a governance advantage; In fact, there are potential challenges as well: 1) Alliance governance may result in slower decision-making compared to single company agility. Many companies have joined forces together, appearing to have a strong and impressive lineup, but those who have truly been in business are aware of the friction costs involved (inevitably, each institution has its own careful thinking, leading to a significant increase in game and time costs); 2) Need to quickly establish initial liquidity and adoption rates, especially when USDT/USDC has formed a strong network effect; 3) So the implementation is crucial, and the actual performance will be verified when OUSD is truly launched later this year. Speaking of thoughts on Circle: 1) Recently, due to the tightening of US dollar liquidity, https://(x.com)/qinbank/status/20688489172788392020? s=46&t=k6rimWsEbo2D2tXolYcM-A， The issuance of stablecoins USDT and USDC is both declining, and the magnitude is still significant. The decrease in circulation and the emergence of a seemingly powerful new competitor can easily affect emotions and lead to a sharp decline; 2) Is Circle completely worthless? It shouldn't be, after all, there is still a circulation of over 70 billion US dollars, which is widely used in on chain, exchange, and trade finance fields. Unless the issuance of USDC does not increase at all in the future, that should not be the case. Even if we don't expect the issuance of USDC to reach hundreds of billions of dollars in the coming years, we can still expect at least around 200 billion dollars; 3) Coinbase has also joined the OUSD support group, and many people are worried that it may not support USDC anymore. From a personal perspective, Coinbase joining Ousd supporters should still be defensive and strategic. While Ousd's reserve income is shared, half of USDC's reserve income is distributed to Coinbase. From this perspective, Coinbase's benefits on USDC are still the greatest; 4) The biggest takeaway from today's thinking is the equity of Circle: Firstly, as the subject of the three hardcore narratives of stablecoins, RWA, and agent payments, its attention is still very high; Secondly, the existing business volume and the proactive efforts of the founders and management team still provide a safety net from a fundamental perspective; Thirdly, before USDC fully proves its dominant position in compliant stablecoins, the market will still be concerned about its future competitive landscape and industry position. If new capable competitors emerge, Circle will be easily compromised. This has led to Circle being more suitable for bands rather than trends without fully proving its sufficient dominance and monopoly position in the compliant stablecoin field. How to understand? If it falls too much and oversold, you can actually buy some because there is a safety margin. But if it rises too much, we can't expect it to go any further, so we can't expect it to fall. Wait until you're fucked again, you can still enter at a low price. If the market confirms that USDC can establish a strong enough dominant position in the compliant stablecoin field in the future, then a decent trend market can emerge.