Last night, the market experienced another sharp decline. The red waterfall on the charts caused panic among many, and the entire crypto community was gripped by fear. But amidst this chaos, there is a phenomenon worth noting — the synergy between two types of assets: stablecoins and DeFi lending protocols.

When panic strikes, the market's first reaction is to flee. People rush to withdraw from highly volatile top-tier tokens and seek assets with a perceived value anchor. Stablecoins become a safe haven — they do not fluctuate with the market, and instead see trading volumes surge due to massive conversion demands. On-chain data clearly reflects this: during every sharp drop, stablecoin trading activity spikes.

Interestingly, many holders do not let their stablecoins sit idle in wallets. They have discovered a clever strategy: depositing stablecoins into DeFi lending and liquidity pools. The benefits are obvious — simply holding stablecoins is safe, but zero yield can be frustrating. Through various DeFi protocols and pools, stablecoins can generate immediate returns. Especially those lending markets optimized specifically for stablecoins often offer quite attractive interest rates.

This creates a complete ecological cycle: market panic → capital flows into stablecoins → stablecoins enter DeFi pools for profit. Behind this seemingly simple operation lies a deep understanding of market cycles. Finding a balance between risk and reward is the true essence of financial wisdom.