Walking into the ICU ward, looking at the straight line on the electrocardiogram monitor, no one would celebrate the patient's "stability"—that is actually a sign of death. Ironically, many investors in crypto funds treat this "absolute stability" as the Holy Grail, feverishly chasing lending products that promise fixed interest rates.

Fast forward to December 2025, DeFi has entered deep waters. Some protocols use rollercoaster-like interest rate fluctuations to tell the market a truth: in a decentralized world, volatility is not a disease but a sign of vitality. Conversely, that dead-water-like stability often hints at liquidity exhaustion or systemic risk.

Let's look at this from a different perspective. Your respiratory system is actually the best analogy—during exercise, the lungs accelerate contraction; at rest, breathing slows down. This adaptive process keeps the body in an optimal state at all times. Some next-generation lending protocols' interest rate mechanisms follow this logic, capturing on-chain data at millisecond levels to adjust funding costs in real time.

What are the problems with traditional lending protocols? They rely on delayed price feeds and rigid step models, resulting in—during market volatility—either false prosperity in the liquidity pool or a stampede to collapse. The new generation of protocols introduces a liquidity elasticity engine, allowing the entire system to breathe on its own.