📈📉 The benefits of stable returns in different market phases

Stablecomp
2 min readApr 16, 2024

When a scenario of geopolitical tension occurs, financial markets often react in a volatile and unpredictable manner. Investors become uncertain about the future, and this is reflected in increased price volatility. During these times, investors tend to seek refuge in assets considered safer, such as gold, government bonds of stable economies, the US dollar and other currencies considered stable. In general, during times of geopolitical tension, investors tend to be more cautious and look for assets that offer stability and protection from risk.

During bull markets, low-risk assets offer stability that can help investors preserve capital. While riskier investments may offer higher returns during such periods, lower-risk assets, such as government bonds or investments in highly rated bonds, provide some peace of mind and protection against any market setbacks.

In bear market phases, low-risk assets become even more crucial. During such periods, volatility may increase dramatically and investors may suffer significant losses on their riskier investments. Low-risk assets offer security and stability that become particularly valuable in this environment. They can act as a buffer against losses and allow investors to maintain some financial stability while the market experiences difficulties.

Having stable returns in stablecoins can be useful for several reasons, in line with what was discussed previously regarding low-risk assets, because they preserve capital, represent an easy-to-access source of liquidity and are not volatile assets. The current geopolitical context is not one of the best; and it is precisely for this reason that we at Stablecomp have created these performance solutions.

Since we are only at the beginning of this period of tension and since on-chain activity in decentralized finance is still high, the returns on the main stablecoin pools are very generous, in fact we find:
- FRAX — USDC APR 26%.
- MIM — 3CRV APR 20%.
- PYUSD — USDC 12% APR

Although we hope for a peaceful resolution of international disputes, we believe that Stablecomp can be a strategic solution for the decisions of every web3 user in this period. We will continue to refine our product and offer as many performance solutions as possible that can match everyone’s needs.

Stake your stablecoins here: https://dapp.stablecomp.com/vaults

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Stablecomp

The first DeFi platform to easily manage and earn interests on your stablecoins. 💻https://www.stablecomp.com/