Regarding lisUSD, many people's first reaction is: not stable, this is a stablecoin?

But this judgment is a bit problematic. The instability of lisUSD is precisely the key to its survival.

We are often fed the concept: stablecoins must be firmly pegged to 1 USD, not a penny off, only then is it considered safe. But reality has repeatedly shattered this myth. Historically, projects claiming absolute stability look rock-solid, but once extreme market conditions hit, they collapse immediately. USDC, UST are examples— they treat stability as a faith to uphold, but when pressure mounts, they break thoroughly.

lisUSD takes a different approach. It does not pursue maintaining the 1 USD peg under extreme market conditions, but instead allows for limited and controllable price deviations during liquidity shortages and panic deleveraging. This may sound like a flaw, but in fact, it acts as a shock absorber for the entire system.

The most dangerous aspect in the crypto market is not price volatility itself, but bad debts piling up in the system without being released. Traditional stablecoins must bear all the pressure, ultimately either halting trading or outright de-pegging to zero. lisUSD releases pressure through market price adjustments, using supply and demand to absorb shocks, and makes risks transparent. This way, risks won't blow up in the dark.

The most seemingly stable projects in the crypto space often die the fastest. Systems that can survive cycles understand that fluctuations exist and accept imperfection. The original intention of lisUSD's design is: extreme market conditions will come, and I must survive.

If you're looking for a tool that remains forever unchanged and stable, lisUSD may not be suitable. But if you're seeking a mechanism that is less prone to collapse under extreme conditions, it's worth a close look. Don't judge a system designed for long-term survival based on short-term price fluctuations.