Infrastructure-type products are better understood through a “flywheel” rather than a “funnel” model for growth. The flywheel emphasizes mutual feedback and compound effects across various stages: depth on the supply side enhances user experience, thereby attracting more genuine demand, which in turn strengthens market-making and asset supply. The growth path of USD1SWAP is precisely built around unifying clearing, compliance, and liquidity to construct this flywheel.
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1. Supply-Side Flywheel: Market-Making and Depth Virtuous Cycle When market-making capital can achieve a stable cash flow structure within a clear and auditable framework, increased depth leads to more stable pricing performance, attracting more genuine trading activity. The subsequent growth in trading volume further enhances market-making returns and retention, forming a positive feedback loop of “depth — demand — revenue.”
2. Demand-Side Flywheel: Payment Entry and End Applications
When real payment flows, such as stable payments, merchant settlements, and B2B fund routing, enter the liquidity pool, clearing and price discovery can be completed within the same system. Better execution quality reduces user churn and increases engagement, attracting more merchants and end-users into the same pathway, thereby generating steady demand-side growth.
3. Asset-Side Flywheel: RWA and Price Discovery
When Real-World Assets (RWA) are issued and circulated within an auditable clearing and reconciliation system, they gain native price discovery and deep liquidity. The richness of assets on the asset side enhances user retention and trading activity, further attracting new assets and market-making into the ecosystem.
4. Developer Flywheel: Interface and Tool Ecosystem Effects
Standardized interfaces, indexing, and reporting tools enable partners to shorten integration cycles. More applications and service integrations bring new demand and capital flows, which in turn feed back into both the supply and asset sides, creating a centripetal force and compound effects within the ecosystem.
5.Observable Health Metrics
To measure the quality of the flywheel’s operation, focus on the following metrics: slippage and pricing stability under common transaction sizes (liquidity quality); penetration rate of on-chain settlement and reconciliation (clearing coverage); number of effective ecosystem connections (wallets, processors, merchants, asset issuers, etc.); and market-making retention and stability of fee distribution. These metrics objectively reflect whether growth stems from genuine usage rather than short-term incentives.
Conclusion
The growth of USD1SWAP is not driven by isolated activities but by systematic efforts to “transform clearing, compliance, and liquidity into reusable services.” As payment flows, asset flows, and the developer ecosystem continue to interact, category momentum will gradually become evident, enabling broader application scenarios with deterministic product capabilities.
