Hey Edge readers,

It’s been a turbulent few weeks in crypto. Sweeping liquidations, old wallets suddenly moving funds, the longest government shutdown in U.S. history, several high-profile hacks, and several stablecoin depegs have added a lot of volatility to the market. However, these are the moments that test your discipline more than your portfolio.

In markets like this, emotions tend to do the most damage so it is very important to understand how can you create a resilient strategy to navigate through the markets.

Stay sharp. 🫡

-The Exponential team

Disclaimer: This content should not be taken as financial advice. Always do your own research before making any investment decisions.

Why the Market’s Been on Edge

The past few weeks have stacked one volatility trigger on top of another, and each one on its own would be enough to make investors uneasy. Together, they’ve created one of the most emotionally charged environments we’ve seen in a long time.

The longest government shutdown in U.S. history just came to a close, freezing key economic operations and shaking confidence across every risk asset, crypto included. Right as that uncertainty peaked, the market was hit with a spike in liquidations as over-leveraged traders were flushed out, thinning liquidity and accelerating every price swing. At the same time, several large, long-dormant wallets began moving funds, stirring speculation and adding another layer of stress.

Then came a string of high-profile hacks that rattled trust, followed by a handful of stablecoin depegs that reminded everyone that even “safe” assets can wobble under pressure. Taken individually, each of these events is disruptive. All of them landing in the same window created a perfect storm of anxiety.

It’s no surprise the Crypto Fear & Greed Index hovered near 10, a level that signals peak fear and widespread panic. When every headline feels like another warning sign, investors naturally start questioning their footing. But fear spikes don’t necessarily mean fundamentals are collapsing, they often reflect how crowded, reactive, and sentiment-driven markets become during stress.

Do’s: What to Lean On During Volatile Markets

Even though volatility can bring a lot of unease, it is pretty important to understand that there is no market that has ever gone up only in the short-term. Generally, volatile markets bring a lot of great opportunities so here is a list of some actions you can take to take advantage of those price swings.

• Have yield-bearing assets + cash reserves to stay defensive and opportunistic.
  Instead of sitting fully exposed or fully sidelined, blend both. Yield Optimizers like YO offer yield-generating assets like yoUSD (earning ~11% APY) that allows you to keep your capital productive while you wait out volatility. This also allows you to earn yield you can later reinvest into stables, or re-deploy at better prices into volatile assets like BTC or ETH (from which you can also earn yield through yoBTC and yoETH).

• Dollar-cost average to let volatility work for you.
  DCA removes the pressure of catching the bottom and turns price swings into an advantage. For example:
  Say you commit to buying $1,000 of BTC every month. In Month 1, BTC is at $100,000, so you buy 0.01 BTC. The next month, BTC drops to $90,000, and that same $1,000 now buys you 0.0111 BTC.

  Instead of being “down,” your average entry price isn’t $100k anymore, it moves toward $95k, because you bought more BTC at the lower price. Over many months, this compounding effect smooths out volatility and helps you accumulate more BTC without needing perfect timing.

• Reconnect with your thesis and zoom out.
  Volatility feels overwhelming when you lose sight of why you invested. Spend time revisiting your goals, your time horizon, and your reasoning. Once your thesis is clear again, the short-term noise becomes far less threatening.

Don’ts: What to Avoid at All Costs

• Don’t use leverage, it magnifies losses, not discipline.
  In fast markets, even small leverage can force liquidation long before assets recover. Leverage turns volatility into a threat instead of an opportunity. Preserve capital so you can stay in the game.

• Don’t over-monitor charts, panic thrives on screen time.
  Watching every tick fuels emotional decision-making. Stepping away helps you regain perspective and prevents you from making impulsive trades based on fear.

• Don’t ape into whatever influencers are shilling.
  Random social media “alpha” is almost always designed to pump their bags—not protect yours. Volatility makes people desperate for quick wins, but chasing influencer hype is one of the fastest ways to blow up a portfolio. Stick to assets and strategies you understand.

Stay grounded

Markets will calm, sentiment will reset, and narratives will evolve. What matters is keeping a clear head and a steady plan. Don’t let fear push you into decisions your future self wouldn’t make. Stay patient, stay intentional, and let the long-term thesis guide your moves, not short-term noise

TL;DR

• Build with YO!

• yoUSD and yoEUR unphased by volatility

• YO + Pendle fixed yields remain strong

• The open YOligarchy program has concluded; a new, curated phase is coming soon.

🔗 Check out the full article.

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In the news 🗞️

• Harvard University Boosts Its BlackRock Bitcoin ETF Investment to $442.8M: Harvard University has expanded its stake in BlackRock’s iShares Bitcoin Trust (IBIT) by nearly 260%, now holding 6.81M shares worth $442.8M, SEC filings show. The position, first opened in Q2 2025 at $116.7M, makes IBIT Harvard’s largest single investment, surpassing its holdings in major tech stocks. The university also added $235M in SPDR Gold Shares, signaling a growing institutional pivot toward Bitcoin and gold exposure.

• Aerodrome Co-Founder Talks Aero, Uniswap Feud, Pseudonymity: Dromos Labs unveiled Aero, its first Ethereum-based exchange, with CEO Alexander Cutler discussing the team’s shift from pseudonymity and his public criticism of rival Uniswap’s revenue-sharing plan. Set to launch in 2026, Aero aims to streamline cross-chain swaps and attract deeper liquidity, building on the success of Velodrome and Aerodrome. Cutler says reception has been “overwhelmingly positive,” as the team positions Aero to compete for dominance in the on-chain economy.

• Aave Labs Unveils New Savings App Offering Up to 9% Returns on Deposits: Aave Labs will launch “Aave App,” a retail-focused savings platform offering up to 9% yields and $1M in security protection, aiming to rival banks and fintechs. Built atop Aave’s $55B lending protocol, the app simplifies DeFi access for mainstream users and supports bank, card, and stablecoin deposits. The move follows a wave of crypto neobanks and partnerships, including Morpho’s Coinbase integration, as firms compete to bring high DeFi yields to everyday savers.

Trending 📈