How can DeFi regain its “safe haven” role during structural frictions?

The game between the U.S. and China has once again entered a phase of concrete confrontation, with auto tariffs suddenly jumping to 125%. This kind of tariff war is nothing new, but this “upgraded version” has indeed reignited that classic “global resonance” pressure across capital markets.

Stocks, commodities, and bond markets all displayed varying degrees of risk-off behavior. Meanwhile, the crypto market’s reaction was surprisingly mild. That got me thinking:

Is DeFi, in such structural friction, regaining its role as a “safe haven”?

I used to be skeptical of this idea, but my thoughts are gradually shifting. Here are some of my recent observations and reflections:

Tax “Relief” Brings Back Certainty to DeFi

In March, the U.S. Senate passed a resolution that was highly favorable to DeFi users:

Temporarily overturning the IRS requirement for on-chain protocols to report user transactions.

This is actually quite a significant signal. While it doesn’t mean “tax exemption,” it does suggest that the tax compliance pressure on on-chain interactions has been eased in the short term.

This opens up a subtle yet crucial window: users can regain confidence in on-chain asset allocation within a less regulatory-frictioned environment.

To me, this resembles how international capital once used offshore markets as “low-friction channels.” DeFi may well be assuming the prototype of that role.

Structural Yield Is the Logic Worth Watching Right Now

The greater the market uncertainty, the more capital seeks structurally predictable paths—even if the returns aren’t high.

That’s why staking products are regaining attention. You stake assets on the mainnet and receive protocol-level rewards. The logic is clear, the path is predictable, and volatility is relatively low.

Especially in ecosystems like Avalanche, where staked tokens (e.g., sAVAX) can still participate in other DeFi activities like lending or liquidity mining. This way, users retain their staking yield without fully sacrificing liquidity.

This essentially creates an on-chain logic that resembles “structured financial products”:

Yield comes from base-layer protocols; risk is concentrated in mainnet security and DeFi contract layers; the path and expectations are reusable and traceable.

When Regulatory Expectations Are Unclear, On-Chain Transparency Becomes a Moat

No one knows exactly how taxes will be levied or how regulation will evolve, but one thing is certain: protocols with complete on-chain records and clear structure will have stronger long-term survivability than those relying on opaque operations.

One project I’ve been following lately is BENQI. It’s not a breakout star, but it follows a standard path:

Users stake AVAX → Receive sAVAX → Use it as collateral for borrowing or in liquidity pools.

The entire asset path is traceable, contract actions are public, and it’s friendly for future compliance.

This combination of “structure + transparency” effectively becomes a moat at this stage. It may not deliver sky-high returns immediately, but it offers long-term stability over time.

Structural Composition Is Evolving From Tool-Patching to Asset Allocation Systems

In the past, many used DeFi as a “tool for arbitrage.” Today, more and more people are building “asset structures.”

For example:

• You stake AVAX and get sAVAX;
• Lending stablecoins using sAVAX collateral;
• Use stablecoins for liquidity mining or participate in on-chain RWA projects;
• Then auto-compound the whole structure.

The entire process isn’t complex, but what it represents is no longer just a speculative play—it’s an on-chain structured yield model, comparable to actively managed portfolio assets.

From this perspective, DeFi is slowly shedding its “high-risk, high-volatility” label and evolving into more mature financial instruments.

This Is a Stage Worth Seriously Building On-Chain Structures

My current attitude towards DeFi is:

It may not be a window for explosive profits, but it could be the most worthwhile stage to build structures and accumulate positions before the next bull market.

If you believe macro uncertainty will persist;

If you don’t want all your assets exposed to high volatility;

If you hope tax, compliance, and on-chain yields will eventually align into a cohesive system—

Then building an on-chain structured yield portfolio might be a worthwhile move.

BENQI and sAVAX may not be the ultimate solutions, but their models and mechanisms do possess qualities of “explainability, composability, and iterability”—making them great experimental tools for such structures.

We don’t know when the next cycle will come. But starting to build the structure now is never the wrong direction.

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