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USD1 shed about $401M in two weeks to roughly $4.02B without ever slipping off its peg, a clean stress test on paper that also exposes how few hands actually hold the supply, just as the token prepares to change issuers under legal uncertainty.
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In Today’s Edition:
**Headline:USD1 Sheds $400M in Two WeeksQuick Bites:Stablecoin Supply StallsYield of the Week:**Morini FXArbUSDTRY’s 25.36% APY
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HEADLINE
**State of play: **World Liberty Financial’s USD1 lost roughly $401M (9.1%) in market cap between Oct. 6 and Oct. 19, falling to about $4.02B, yet the exit concentrated among a handful of large holders while the peg held between $0.998 and $1.000.
Ethereum logged $184.60M in net redemptions across 63 burns, with over 99% routed through BitGo, USD1’s current issuer and custodian.
BNB Chain saw $200.43M redeemed across just 12 burns, nearly all from a single unidentified address sending batches of $30M to $50M.
Cross-chain transfers between the two networks totaled under $1M, and Solana supply stayed flat at about $1.42B, so nothing offset the burns.
USD1’s Ethereum supply fell 11.45%, far steeper than USDe (4.93%), USDC (2.18%) and USDT (0.76%) over the same window.
The token now heads to World Liberty’s own trust company as issuer, under a charter whose legal footing is being contested in court.
**What’s Next: **Watch whether fresh mints on Solana or elsewhere rebuild supply once World Liberty’s trust company takes over issuance from BitGo.
**Why it Matters: **A stablecoin whose size hinges on a few whales is a fragile base for any issuer, especially one with a charter under legal challenge.
**Our Take: **The peg held, but that only proves redemptions work, not that demand exists; USD1 looks less like a payments rail and more like a parking spot for a few large holders who are now leaving.
QUICK BITES
USD1sheds$400M in market cap in two weeks.Stablecoin supplystalls, but payments jump 45%.MastercardunveilsStablecoin Security tool to screen payments.MeshtapsVisa to let users spend crypto without a separate card.CircledefendsUSDC economics as rivals court its partners with bigger cut.
YIELD OF THE WEEK
The vaultaccepts USDC deposits and runs a delta-neutral FX arbitrage strategy on the USD/TRY carry trade, with ~$2.82M in deposits against a $30M capacity cap and standard 1-day processing for withdrawals.Capital is deployed into aFXArbUSDTRY positions via looping strategies, with ~$38.3M in total volume processed since inception across 172 deposits and 108 withdrawals.
Yield is generated from FX carry arbitrage between USD and TRY, delivering a 25.36% APY since inception while also earning ACC points.
The vaultaccepts USDC deposits and allocates capital to Spice Credit’s open-term credit strategy, with ~$1.23M in deposits against a $1.5M capacity cap at 82% full, with next redemption on October 24, 2026.Capital is deployed into Spice Credit’s permissioned credit markets with a minimum deposit of 50 USDC and ~$1.55M in total volume processed since inception.
Yield is generated from credit market lending activity, delivering a 14.25% expected net APY.
The vaultaccepts USDC deposits on Monad and allocates capital to Aegis’s yield strategy, with ~$11.4k in deposits against a $5M capacity cap and next redemption on November 2, 2026.Capital is deployed into Aegis’s yield infrastructure with a minimum deposit of 100 USDC and ~$1.38M in total volume processed since inception.
Yield is generated from Aegis’s underlying strategies, delivering a 14.12% expected net APY.
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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.
