PANews reported on November 4th that the GoPlus Chinese community published an analysis on the X platform stating that, with the continued decline in price and reduced liquidity, more stablecoins like XUSD may be facing a higher risk of de-pegging or insolvency.

• 1. Yield-bearing stablecoins rely on high-return strategies (lending/leverage/LP rewards), have large exposure to external borrowing, and have high liquidity requirements (xUSD belongs to this category).
• 2. Algorithm/Dual-Token Stablecoins (without sufficient external collateral): The mechanism for maintaining price stability relies on market arbitrage/token burning, and there are no reserves for immediate redemption in fiat currency.
• 3. For projects with centralized governance or a single counterparty, the loss of private keys, governance delays, or custodian bankruptcy can all lead to the closure of redemption channels.
• 4. High concentration of holdings / A small number of whales reducing their holdings of tokens with a very high percentage of ownership in a few wallets can have a significant impact on secondary market liquidity and price stability.
• 5. Projects that promise high returns but lack transparency, have insufficient audits, anonymous teams, opaque leverage, associated addresses, and unclear sources of returns all increase project risk.