@prices
In high-volatility markets, stablecoins serve as a crucial asset allocation tool for investors seeking to mitigate risk. By maintaining a peg to fiat currencies, stablecoins provide a safe haven during market downturns, allowing investors to preserve capital. Common strategies include using stablecoins for liquidity in decentralized finance (DeFi) platforms, facilitating quick trades, or earning yield through lending protocols. Asset allocation may involve diversifying across various stablecoins to optimize returns while minimizing exposure to individual coin risks. Overall, stablecoins play a vital role in portfolio management, providing stability amidst market fluctuations.