Will USD1 be deflationary?
I believe this is a concern for many users playing with USD1 financial management.
The answer is no.
The fluctuations of this stablecoin are not very large, and even if it drops a little bit, the interest over a day or two is sufficient.
Every time someone asks me, "Is it worth participating in Plasma?" I always emphasize: stablecoin narratives seem steadier, but they can easily make people let their guard down. Because you are holding a stablecoin, you naturally feel that "you won't lose too much," but what really hurts you is often not the price fluctuations of the coin, but the lack of transparency in the mechanism, the difficulty in exiting, authorization risks, and the fact that you are entrusting funds to complex strategies without understanding them. For ordinary users, the best way to participate in the Plasma ecosystem is not to rush for the highest APY right away, but to first establish a low-risk participation discipline: ensure the safety of the principal, and then gradually expand into yield and more advanced plays.
@Plasma $XPL #plasma
I believe this is a concern for many users playing with USD1 financial management.
The answer is no.
The fluctuations of this stablecoin are not very large, and even if it drops a little bit, the interest over a day or two is sufficient.
Every time someone asks me, "Is it worth participating in Plasma?" I always emphasize: stablecoin narratives seem steadier, but they can easily make people let their guard down. Because you are holding a stablecoin, you naturally feel that "you won't lose too much," but what really hurts you is often not the price fluctuations of the coin, but the lack of transparency in the mechanism, the difficulty in exiting, authorization risks, and the fact that you are entrusting funds to complex strategies without understanding them. For ordinary users, the best way to participate in the Plasma ecosystem is not to rush for the highest APY right away, but to first establish a low-risk participation discipline: ensure the safety of the principal, and then gradually expand into yield and more advanced plays.
@Plasma $XPL #plasma