On-chain activity reveals an interesting phenomenon—large sums of capital are quietly flowing into certain yield-generating protocols. The underlying logic behind this is actually quite straightforward.

Many institutional players have discovered a clever approach: using volatile assets to borrow stablecoins, which allows participation in mining and arbitrage operations, while also staking governance tokens to earn airdrops and influence. This multi-layered profit structure has quickly become an excellent risk-hedging tool—ensuring stable cash flow in bear markets and not missing out in bull markets.

For example, some collateralized stablecoin protocols are perfect implementations of this logic. Users deposit volatile assets as collateral, borrow stablecoins that can be used flexibly, and the protocol’s governance tokens also have significant potential. Why is this design rapidly gaining popularity among institutions? Because it’s not just a marketing gimmick, but a genuine cash flow generation mechanism.

While ordinary retail investors are still chasing meme coins, smart money has already begun to build out the revenue infrastructure. The value of governance tokens for these stablecoin protocols essentially depends on the real-world application rate of the yield-bearing stablecoins. The broader the application, the more solid the value chain becomes. Those currently overlooked players might very well be the next opportunities for market revaluation.