November 6, 2025

Recently, I have started to see some aftereffects of the 1011 crash. A couple of days ago, a well-established protocol, Balancer, suffered a major incident where a vulnerability was exploited by hackers. Due to the large number of forked projects, many projects have had to urgently stop operations, especially Bear Chain, which has completely halted. Although the attack on the protocol and the crash are not directly related, based on past experience, such incidents are more likely to occur during times of poor market conditions, as the possibility of insider theft cannot be ruled out.
Another direct impact is that the stablecoin USDx may have already collapsed. Currently, major deposit protocols are actively eliminating the risk of bad debts. This stablecoin employs a delta-neutral strategy, but during a market crash, it had a leg position that was subject to ADL, leading to a risk exposure. If this is the case, users' deposits may not be completely wiped out, but such events often serve as a trigger that uncovers more bad debts, which is the most serious issue.
Recently, besides mentioning the need to pay attention to the risks of the overall market, on-chain deposit protocols require even more caution. At this time, leverage should be lowered, especially for stablecoins, and one should not seek high returns anymore. As discussed in yesterday's live broadcast, from a macro perspective, the likelihood of an immediate halt to the bull market is not high. However, even if the bull market continues afterward, it will basically be the last phase of the market. Therefore, I strongly advise against making large-scale bottom-fishing investments; large-scale bottom-fishing should only occur when the market is in a state of despair, and we are far from that point right now.
The short-term rebound is still within expectations, but I think due to the weakness in the market, this rebound won't last too long. If you had it yesterday...