Title: USD1: High Interest Temptation and Market Reversal in a Bear Market - WLFI's Bear Market Burning Money "Art" ◎ The entry to disrupt WLFI's stablecoin USD1 has been in a lukewarm state since its launch in April last year. No one uses it, there is no support for CEX or DeFi protocols, and naturally there is not much trading volume. Even if you are a stablecoin created by a project supported by the Trump family. The turning point of the situation occurred at the end of last year. USD1 has reached a heavyweight partnership with Binance: users on Binance who hold USD1 can enjoy a 20% APR airdrop, and most importantly, there are no limit restrictions. After 1011, the market liquidity sharply decreased, BTC has risen and rebounded, and market funds are looking for safe haven everywhere. In CEX, the unlimited amount of stablecoins for wealth management has an annualization rate of less than 2%, and the on chain DeFi protocol is only 3% to 4%. Suddenly, a stablecoin came out and said it would give you 20% APR without any limit, directly igniting the wealth management funds. The annualized incentives significantly higher than the market, coupled with the security endorsement provided by Binance, the largest institution in the universe, and the support of the Trump family, led to a rapid influx of funds into USD1. The market value of USD1 has doubled from $2.7 billion to $5.4 billion in just half a month. Of course, in a market where $135 million of funds were burned out, burning money is only a means, use is the end. WLFI's money burning strategy is to attract people to hold, trade, and use USD1 through high interest rates. WLFI has been providing financial subsidies for up to six months now, with a cumulative expenditure of over $135 million (in the form of WLFI), continuously attracting people to convert other stablecoins or assets into USD1. In the bear market environment of continuous decline this year, this step can be said to be twice the result with half the effort. If it were last year, the effect would have been greatly reduced. The purpose of attracting USD1 is to make everyone truly use it, after all, sleeping there is meaningless. After attracting funds with high interest rates, WLFI launched a series of combination punches on Binance: launching multiple USD1 trading pairs, using USD1 as contract margin, and offering WLFI airdrop bonuses for contract holdings of USD1, promoting everyone to move USD1 from "deposit" to "use". With a combination punch, the trading volume of USD1 skyrocketed. ◎ USD1 Half Year "Transcript" WLFI burned $135 million in half a year, making USD1 basically cover all application scenarios, including CEX (Binance, Bybit, Gate, Mexc), DeFi protocols Perp DEX。 Becoming the fourth stablecoin. Market value: The market value of USD1 has risen from the 7th place at the beginning of the year to the 4th place currently among US dollar stablecoins, with only three major mountains ahead: USDT, USDC, and USDS (DAI), leaving behind USDe, PYUSD, USDD, and others. From another perspective, USD1 has become the fourth major mountain. Market size: The trading volume of USD1 has increased tenfold from an average daily trading volume of $200 million at the beginning of the year to the current average daily trading volume of $2 billion. Brand influence: In six months, USD1 has gone from being unused and ignored before to now being the first thing that comes to mind when it comes to stablecoin wealth management on exchanges. WLFI spent six months and $135 million to burn USD1, which is currently second only to USDT and USDC in popularity. The exchange of $135 million resulted in a 50% increase in market value, a 10 fold increase in usage scale, and brand awareness second only to USDT and USDC, which I believe is very cost-effective. After gaining a market position second only to USDT and USDC in terms of burning money on Crypto, USD1 has started to focus on AI infrastructure outside the industry. Firstly, it is not realistic for USD1 to catch up with or even surpass USDT and USDC in a short period of time. USD1 needs to have growth points that can achieve overtaking on bends; Secondly, in terms of AI payment infrastructure, it has just started and the market imagination space far exceeds that of Crypto. Blue ocean exploration is always better than red ocean competition. Empowering AI machine payment is the smartest cornering overtaking strategy for USD1. The foundation of USDT and USDC is too deep, and it is basically unrealistic to surpass them solely through Crypto trading and wealth management. But AI payment is a brand new blue ocean track, and currently there is no stablecoin specifically dedicated to cultivating this blank market. In the past, stablecoins only served ordinary people for transfers and transactions, and the scenarios were very limited. And USD1 targets new demands such as AI intelligent agents, computing power leasing, and machine automatic settlement, making universal USD payments in the machine world. USD1 has gained fame, volume, and liquidity through burning money, laying a solid foundation. The next step is to build barriers and reap long-term benefits through the AI ecosystem. Once the machine payment scenario is fully implemented, USD1 will no longer be a regular stablecoin that relies on subsidies to attract traffic, but an underlying infrastructure with real demand and exclusive scenarios. The ceiling of market value and user scale will be opened up in the future, and there is a possibility of surpassing the first two mountains.