Many people are wondering how to keep stablecoins stable at $1 while also generating returns. When I saw StandX @StandX_Official's DUSD solution, I thought its answer was quite interesting.

Its core is a very clear logic: hedge to stabilize, mechanism to generate yields.

Simply put, you deposit USDT, and the protocol automatically opens an equivalent short position for you. This way, regardless of which way the market moves, the system as a whole can remain balanced. I understand this as using a mathematical model to proactively strip away the risks of price fluctuations, leaving things like funding rates as potential sources of income.

The benefit of this design is honesty. It doesn't shy away from the fact that when funding rates turn negative, hedging might become a cost. To address this, a dedicated stable reserve fund is prepared, which acts more like a risk buffer, showing that the team has contingency plans for extreme situations.

What’s most interesting is the trade-offs made for stability: a 7-day redemption period and small fees. At first glance, it seems to sacrifice immediate liquidity, but upon closer thought, this is precisely to ensure the entire hedging system can operate smoothly. It prioritizes not your ability to withdraw at any moment, but the long-term, stable operation of the mechanism. This slow approach actually makes it seem more reliable.

Therefore, in my view, DUSD is not a quick cash-out tool but a carefully designed risk-neutralization machine. It transforms stablecoins from mere units of valuation into a productive asset with built-in strategies that can generate cash flow. This might be its true value in the complex DeFi world—using transparent engineering logic to exchange for a verifiable sense of security.