Things have been lively on the chain again recently. There are reports that a major influencer sold $1.5 million worth of ETH in a short period, followed by a wave of market panic—the $400 mark was brought up again. Interestingly, at the same time, a phenomenon worth noting occurred: the liquidity pools of stablecoins experienced a net inflow of $180 million.

What is the underlying logic behind this? Rather than saying it's panic selling, it's more about a shift in risk management.

Let's take a look at the current state of stablecoins in the market. Besides the traditional big players, algorithmic stablecoins have also been evolving over the past two years. Take USDD, for example—this stablecoin based on the TRON chain uses a 1:1 USD peg mechanism, with an over-collateralization rate exceeding 200%. This figure is even more conservative than leading products like DAI.

Why is this indicator so critical? Because it directly impacts the credibility of stablecoins under extreme market conditions. Over-collateralization means that even if the underlying assets drop significantly, the peg of the stablecoin won't easily break.

From a functional perspective, what conveniences do these products offer? Zero-fee instant swaps address a pain point—instant settlement means you don't have to wait, and even in volatile markets, network congestion won't cause delays. Cross-chain deployment (Ethereum, TRON, BSC) makes fund flows more flexible, significantly reducing arbitrage costs. Regarding staking yields, annualized double-digit returns in a bear market environment can indeed generate income from idle funds.

Returning to the sell-off event—why are so many funds accumulating stablecoins at this point? The answer is simple: when uncertainty rises, the combination of liquidity and yield is more attractive than just holding assets. You don't need to bet on where the bottom is; just hold safe assets and earn reasonable returns, waiting for the right opportunity to act.

This isn't surrendering; it's a different trading rhythm. Having bullets in hand allows you to pull the trigger at the right moment to buy the dip. No matter how the market fluctuates, the value peg of stablecoins remains unchanged, and the yield counter keeps ticking. Instead of exhausting energy at uncertain lows, it's better to sleep like a baby with confirmed returns.