The biggest concern in finance is not low returns but high risks. The strength of ListaDAO and USD1 lies precisely in risk management.

In traditional financial systems, risk management relies on manual approval and post-event firefighting, which is inefficient and prone to errors. On the blockchain, it's different—ListaDAO embeds risk control rules directly into smart contracts, locking down risks before they even materialize.

How exactly does it work? Over-collateralization combined with automatic liquidation. When your collateral's value drops, the system automatically triggers the liquidation process, preventing bad debt from forming. This automated risk control model reduces uncertainties caused by human intervention, enhancing system stability.

USD1 plays a special role in this ecosystem—it acts like a shock absorber. It separates highly volatile risk assets and users' real funds, allowing users to exchange limited risk for potential returns. Essentially, stablecoins are a risk management tool.

Another key point: all parameters, collateral ratios, and liquidation rules are publicly available on-chain, and the code is the proof. Anyone can audit at any time, with no gray areas. This transparency directly eliminates moral hazard, and users no longer need to trust any institution's promises—everything can be verified.

Therefore, from a risk control perspective, the combination of ListaDAO and USD1 is not simply about pursuing high returns but about building a trustworthy, controllable, and auditable financial system.