Currently, most stablecoins have their annualized yields back down to the 3%-5% range, but there are still people selling stablecoins with 12% or even higher returns. Anyone who has been in this market for a few years knows that the first reaction is not envy, but vigilance—if stablecoins can achieve a 12% annualized return, is this really reliable?

My initial attitude was also skeptical. Because I have seen too many tricks before: the "stablecoin + high yield" combination is either short-term subsidies burning money to support it, or risks hidden in unseen places.

Rather than blindly participating, it's better to first understand—where exactly does this 12% return come from? If the yield shrinks, can the system still operate normally?

Breaking down this question, you'll find that it's not a single-layer structure. At the core is the over-collateralization design of the stablecoin itself. Here's a key point: high returns are not achieved by compromising stability. Over-collateralization, on-chain auditable assets, PSM zero-slippage exchanges—these mechanisms are not meant to extract profits but to ensure the system remains stable under market pressure. Returns only occur after the premise of "first maintaining stability" is satisfied.

The real core behind achieving double-digit annualized returns lies in the sUSDD and Smart Allocator distribution mechanisms. sUSDD is not just a simple yield token; it is backed by a comprehensive layered incentive design...