ListaDAO on the BNB Chain has carved out a unique path in the LSDfi field. The USD1 launched last year has attracted considerable attention, especially since the project is supported by ecosystem partners like WLFI. But now, the pressing reality facing everyone is: global stablecoin regulation is rapidly tightening.

The EU MiCA regulation has officially come into effect, and the US, Japan, and South Korea are also actively drafting or refining related rules. The entire industry can feel this regulatory pressure. What makes USD1 special is that it is neither backed directly by fiat currency like USDT nor fully following DAI’s decentralized over-collateralization route, but instead chooses a "hybrid" approach of crypto asset interest-bearing collateral. This positioning sounds innovative, but in practice, it faces three significant hurdles.

First is the identity issue. As an issuer, DAO itself has no legal status and cannot bear legal responsibility. Without a clear centralized issuing entity, regulators are likely to classify it as an illegal issuance. Second is the obvious shortcoming in reserve security. Highly volatile crypto derivatives cannot support the security needs of a stablecoin, and are far less stable and reliable than cash or government bonds. The third pitfall is the lack of infrastructure—no proper KYC or anti-money laundering mechanisms have been established, and traditional financial institutions are unwilling to cooperate, which will inevitably lead to liquidity issues in the long run.

The path ahead for ListaDAO actually only has four options, each of which is difficult. One is to proactively compromise with reality by establishing a compliant legal entity and following traditional financial routes. Two is to restart in a jurisdiction with relatively lenient regulation. Three is to leverage zero-knowledge proof and other technologies to achieve a certain level of compliance. Four is to simply change the narrative and not claim to be a currency, which could reduce regulatory attention. In essence, this is a constant tug-of-war between maintaining the original decentralization ethos and meeting practical compliance requirements. Whether ListaDAO can survive and how it does so will have a profound demonstration effect on the entire crypto-backed stablecoin sector.