Risk and return in a bull market may be returns, while risk and return in a bear market is risk!
Recently, two hot topics have exploded - RAVE and AAVE are both like this, the difference is that the former is actively ambushed, and the losses of traders are most likely sunk costs.
The latter is passively implicated, and users' funds may at least receive partial compensation.
Umbrella staker itself is the role that first bears the bad debt risk in the AAVE ecosystem. Unless all funds are recovered or Kelp and Layerzero are willing to compensate in full, Umbrella staker cannot recover all losses. If some funds can be recovered or compensated, it will also first compensate the losses of deposit users. Therefore, Umbrella staker actually faces extremely high risk exposure in a bear market environment.
Even ordinary deposit users of AAVE face considerable risks.
So, the next sentence is very cliché, but it might really be useful: the core essence in a bear market is to be cautious; when determining a shift to a bear market, we should not think about how to earn more in a bear market, but rather think about ways to minimize risks in a bear market.
On one hand, major funds can be concentrated from small exchanges to large platforms. In 2022, most of Bee Brother's funds were in Anyin, and fortunately transferred the funds to Binance before Anyin closed, avoiding the collapse of Anyin.
Among commonly used exchanges, Binance has not had any security issues with funds over the years.
On the other hand, in the selection of financial products, during a bear market, it may be necessary to shift most of the finances from high-yield products to stable financial products.
Before the UST depeg in 2022, a friend had a large amount of funds in UST financial products and asked Bee Brother later; Bee Brother advised him to switch. Unexpectedly, just a week after he cleared out UST, Luna collapsed.
So, Bee Brother currently almost dares not participate in on-chain finance.
Currently, there are 5000RLUSD participating in principal-protected earning coins on Binance, with an annualized return rate of 8%, basically earning 1U daily; the downside is the limit of 5000U.
The other USDT and USD1 are about half each. Binance's USD1 financial activity currently estimates an annualized return rate of 5.8%. The first advantage is that there is no limit, and the second advantage is that the USD1 activity on Binance has been ongoing for 4 months since last Christmas, and it may continue.
Recently, two hot topics have exploded - RAVE and AAVE are both like this, the difference is that the former is actively ambushed, and the losses of traders are most likely sunk costs.
The latter is passively implicated, and users' funds may at least receive partial compensation.
Umbrella staker itself is the role that first bears the bad debt risk in the AAVE ecosystem. Unless all funds are recovered or Kelp and Layerzero are willing to compensate in full, Umbrella staker cannot recover all losses. If some funds can be recovered or compensated, it will also first compensate the losses of deposit users. Therefore, Umbrella staker actually faces extremely high risk exposure in a bear market environment.
Even ordinary deposit users of AAVE face considerable risks.
So, the next sentence is very cliché, but it might really be useful: the core essence in a bear market is to be cautious; when determining a shift to a bear market, we should not think about how to earn more in a bear market, but rather think about ways to minimize risks in a bear market.
On one hand, major funds can be concentrated from small exchanges to large platforms. In 2022, most of Bee Brother's funds were in Anyin, and fortunately transferred the funds to Binance before Anyin closed, avoiding the collapse of Anyin.
Among commonly used exchanges, Binance has not had any security issues with funds over the years.
On the other hand, in the selection of financial products, during a bear market, it may be necessary to shift most of the finances from high-yield products to stable financial products.
Before the UST depeg in 2022, a friend had a large amount of funds in UST financial products and asked Bee Brother later; Bee Brother advised him to switch. Unexpectedly, just a week after he cleared out UST, Luna collapsed.
So, Bee Brother currently almost dares not participate in on-chain finance.
Currently, there are 5000RLUSD participating in principal-protected earning coins on Binance, with an annualized return rate of 8%, basically earning 1U daily; the downside is the limit of 5000U.
The other USDT and USD1 are about half each. Binance's USD1 financial activity currently estimates an annualized return rate of 5.8%. The first advantage is that there is no limit, and the second advantage is that the USD1 activity on Binance has been ongoing for 4 months since last Christmas, and it may continue.