The end of stablecoins? Every market fluctuation gets everyone talking.

Some people use the UST collapse chart to scare others: "Look, decentralized stablecoins end up like this! lisUSD will also fail!" During market panic, the price of lisUSD on DEXes indeed shows discounts, with many people cutting losses at the bottom, hurting themselves.

But it's important to clarify—lisUSD and UST are fundamentally different.

lisUSD is backed by real over-collateralized assets. BNB, ETH, USD1—these are all there, and each lisUSD is supported by assets worth more than $1. UST? It relies on algorithms and "air," and can't withstand strong winds. That's the essential difference.

The Lista protocol's mechanism design is also very robust. Strict LTV caps, automatic liquidation triggers, and even Dutch auctions to handle collateral liquidation in extreme market conditions. If it ever loses its peg, the system can protect itself.

Looking further ahead, once migrated to the Liquity codebase, a mandatory redemption mechanism will be implemented—users can always exchange lisUSD directly for collateral worth $1. This effectively sets a price floor from a mechanical perspective.

So, every time I hear predictions of de-pegging, my response isn't to run away, but to check how much LTV margin I still have. If the market truly experiences irrational discounts, like lisUSD dropping to $0.95, that becomes an arbitrage opportunity—traders buy low and sell high, and the price naturally recovers.

Understanding the mechanism turns panic into opportunity.

Disclaimer: This opinion is based solely on personal research for information sharing and does not constitute any investment advice.