Many people manage funds the same way as turning a light switch—when the market heats up, they go all in; when they sense risk, they immediately clear all positions. Under this all-or-nothing approach, your money is always swinging between two extremes, moving wildly today and dead silent tomorrow.

But those who truly understand capital know that capital operation is actually a precise system, not a simple switch. Frequent trading ≠ efficient operation; it’s actually a waste.

This is why some protocols have such counterintuitive underlying logic: they don’t make you feel your funds are jumping every second, but instead build a mechanism that can perform stably regardless of how much pressure testing it undergoes.

**What is the most expensive cost? Uncertainty.**

You never know if your collateral will be liquidated tomorrow or if your yield strategies will still work next month. The market is full of black boxes.

What do truly good protocols do? They push this uncertainty to the limit:

First, through over-collateralization design, liquidation risk is no longer a sudden nightmare but an inherent part of the system. Asset safety becomes the default state.

Second, yield sources do not rely on a single market. Multiple arbitrage strategies are deployed, smoothing out cyclical fluctuations. You won’t lose everything just because one market crashes.

Third, system behavior is completely transparent. How capital flows within the protocol and how yields are generated are all traceable and predictable, with no sudden shocks.

How significant is the mindset shift this brings? You don’t need to watch the market constantly or operate frequently. Your money automatically circulates within a stable system, continuously generating predictable cash flow. The compound interest effect from this predictability far exceeds the gains from frantic chasing and panic selling.