The hottest on-chain activity recently has been a large amount of capital quietly flowing into a leading DeFi protocol, and what they are doing is quite interesting—massively minting USD1 stablecoins. The logic behind this actually serves as a key to understanding the current market trend.

Compared to ordinary retail investors, these big-cap players have completely different needs. They are not chasing short-term thrills of tenfold or hundredfold returns; instead, they focus on whether their assets can stay stable, whether they can generate continuous income, and whether liquidity is sufficient. The USD1 stablecoin just happens to meet their needs perfectly.

The design logic of this coin is actually not complicated: it maintains price stability through over-collateralization, with yields coming from staking rewards of the underlying real assets. Some people vividly compare it to "on-chain government bonds"—the returns are tangible, the risks are controllable, making it a good long-term yield-generating tool. Large-cap holders stake it and participate in ecosystem governance by staking the corresponding governance tokens, essentially laying out a long-term strategy to share in the growth dividends of the entire protocol.

What does this collective action signal? Simply put, demand is increasing. Their continuous buying and minting activities not only directly support the price floor of USD1 but also push up the total value locked (TVL) of the protocol. The TVL figure can be seen as a "thermometer" measuring the health and vitality of the entire DeFi protocol—higher TVL indicates a healthier ecosystem and greater market confidence. The ongoing upward trend of this data suggests that the market’s recognition of this type of stablecoin ecosystem is on the rise.