Author: Santisa, Crypto KOL
Translated by: Felix, PANews
Before starting the content of this article, let's look at the following story (or reality).
An "endless" tariff list was published. Subsequently, the market crashed, and Altcoins collapsed.
Your original low-risk "mining" yield dropped from 30% to near Treasury bill levels.
This is unacceptable to you. Originally planning to retire with $300,000, with annual "mining" income of $90,000. Therefore, the yield must be high.
So you begin to explore down the risk curve, chasing the imagined yield level, as if the market would favor you.
You replace blue-chip projects with unknown new projects; increase yields by deploying assets into higher-risk new fixed-term protocols or AMMs. You start to feel secretly pleased.
A few weeks later, you begin to question why you were so risk-averse. This clearly seems like safe and reliable".
Then, the surprise came.
The liquid base trading project you which entruentrusted your life savings to, in, leverage, and L2, now your PT-shitUSD-27AUG2025 has lost 70%. You received some vested governance tokens, and months later, the was abandoned.
Although this story is exaggerated, it reflects the reality that has been played out multiple times when yields are compressed in a market. Based on this, this article will attempt to provide a manual for surviving in a bear market p market p struggle to to new reality, and when facing market crashes,, risks to compensate for yield gaps, while ignthe potential costs of these decisions.
<>-neutral investors are also speculators, and their advantage lies in finding unadjusted interest rates. Unlike directional traders, these speculators face only two outcomes: either a earning a little every day or losing a large sum at once.my opinion, the market-neutral rates in the crypto market will be severely distorted during the upward process, providing alpha above their true risk, but the opposite during process providing below the risk-R) while bearing significant risks.
