These days, I see the interest rate side is again talking about expectations, and it feels like market sentiment is tightening and loosening in response. To put it simply, when interest rates go up, people prefer to hold cash and wait, risk appetite decreases, and my positions will also shrink accordingly: not necessarily because I’m bearish on anyone, but because I don’t want to be caught with a needle piercing through me.

I thought as long as on-chain yields are attractive enough, funds would blindly flow in, but every time macro winds blow, the first to get cut are those “seemingly stable” yield stacking strategies... Recently, the criticism of staking and shared security setups as just a set of nested layers isn’t surprising either. As yields stack up, so do risks. When sentiment turns sour, people’s first concern isn’t annualized returns but whether they can exit smoothly.

Anyway, I now have only one principle: when the environment is tight, reduce leverage. Better to miss out than to wake up in the middle of a liquidation notice. That’s all for now.