The crypto market has taken a significant downturn. From a peak Total Value Locked (TVL) of $250 billion in December 2021, the entire blockchain ecosystem has seen its TVL drop to just $106 billion—nearly a 60% decline in less than six months. With high-profile collapses like Luna and StepN, the bear market is undeniable.
👉 Discover how top investors are protecting and growing their assets in this volatile climate.
But where has all the money gone? To find out, we analyzed the top 50 wallet addresses on DeBank—often referred to as "whales"—to uncover their current DeFi strategies. Here are the top platforms where these major players are staking, lending, and mining liquidity during this bear market.
1. Convex: The Whale-Favorite Yield Maximizer
Convex Finance stands out as the most popular DeFi protocol among crypto whales. As a yield-boosting "gunpool" (automated yield optimizer), Convex enhances returns for liquidity providers and CRV token holders on Curve Finance, one of DeFi’s largest decentralized exchanges.
With nearly 100 liquidity pools—ranging from stablecoins to BTC-wrapped tokens and ETH—the platform offers diverse earning opportunities. However, whales show a clear preference for low-risk, stablecoin-based pools.
A major draw is Convex’s role in the Curve Wars, where protocols compete for voting power by locking CRV tokens to earn boosted rewards. By staking CRV on Convex, users gain enhanced yields and governance influence, making it a strategic move during market downturns.
Current APYs on stablecoin pools range from 0.07% to 11.23%, with higher yields available in riskier, non-stablecoin pools. While returns have dipped with the bear market, Convex remains a go-to for whales seeking optimized, relatively safe yield generation.
2. Curve Finance: The Stablecoin Liquidity Leader
Curve Finance is renowned for its deep liquidity in stablecoin trading pairs. Despite ranking second in total TVL behind MakerDAO, it sees less direct participation from whales compared to Convex.
Why? Because Curve’s native yield isn’t high—most stablecoin pools offer minimal returns. Whales who do participate typically either stake CRV or provide liquidity using BTC-pegged assets (like WBTC or renBTC).
Even so, Curve remains foundational. Its low-slippage trading and role in the broader DeFi ecosystem make it indispensable. For whales, it's less about direct profits and more about supporting strategies on platforms like Convex that amplify Curve-based rewards.
3. Aave: The Bear Market’s Lending Powerhouse
Aave continues to be a cornerstone of DeFi lending—even in a bear market. Whales use Aave not just to earn interest on idle assets but also to borrow funds for leveraged yield farming across other protocols.
Interest rates on Aave are currently low, similar to traditional bank savings accounts, reflecting weak borrowing demand. However, this can shift rapidly during high-volatility events—such as major token launches or market crashes—when borrowing costs spike.
For example:
- During BNB launchpad events, borrowing BNB can yield high interest.
- In sharp market dips, demand for stablecoins surges, increasing lending rates.
This flexibility makes Aave a powerful tool for capital efficiency. Whales can maintain exposure to appreciating assets (like ETH) while unlocking liquidity via over-collateralized loans—effectively playing both sides of the market.
👉 See how smart money uses lending platforms to maximize returns without selling assets.
4. Uniswap: Reduced Liquidity Amid Low Volume
Once a top destination for liquidity mining, Uniswap has seen reduced whale participation in the bear market. The reason? High impermanent loss risk and declining trading volume.
Uniswap’s rewards come from a share of transaction fees. With lower trading activity, fee income drops significantly—making it less attractive than stablecoin-focused platforms like Convex or Curve.
Whales who still provide liquidity tend to stick with stablecoin pairs (e.g., USDC/DAI) to minimize volatility risk. But overall, Uniswap’s role has shifted from high-yield farming ground to a more passive infrastructure layer in DeFi.
5. MakerDAO: The Go-To for On-Chain Leverage
MakerDAO and its DAI stablecoin have become synonymous with decentralized finance. DAI is now one of the most trusted crypto-collateralized stablecoins, backed by over 20 digital assets—including ETH and WBTC.
Whales use Maker to generate DAI by locking up ETH as collateral—allowing them to access liquidity without selling their long-term holdings. The stability fee (interest rate) is currently around 0.5% annually, making it an extremely low-cost financing tool.
Beyond borrowing, DAI plays a critical role in pricing, payments, and risk mitigation across DeFi. Its fully on-chain nature—requiring no third-party trust—makes it ideal for large-scale, trustless operations.
6. Frax: The Rising Star in Algorithmic Stability
Frax Finance has emerged as a leader among hybrid algorithmic stablecoins, especially after the collapse of pure algorithmic models like UST and ESD.
Unlike fully algorithmic stablecoins, Frax uses a fractional reserve model—partly backed by collateral, partly algorithmic. This balance has proven resilient in market stress.
Frax is also a key player in the Curve Wars, now holding more CVX than any other protocol. By locking CVX, Frax gains voting power to direct CRV emissions toward its own pools—boosting yields for its users and attracting more TVL.
Current Frax pool yields are among the best in the bear market, especially for stablecoin pairs—making it a favorite for whales seeking sustainable returns.
7. GMX: High-Yield Perpetuals and Staking
GMX is a decentralized perpetual exchange offering spot and futures trading on Arbitrum and Avalanche. While known for trading, whales are increasingly using it for token staking.
Staking GMX or GLP tokens offers impressive APYs—up to 24.6% for GMX and 39.1% for GLP—driven by platform fees from swaps and funding rates.
Rather than taking high-risk trades, many whales use GMX conservatively: low-leverage hedging or passive staking. This blend of safety and yield makes GMX a standout in the current environment.
8. Beefy Finance: Multi-Chain Yield Aggregation
Beefy Finance is a cross-chain yield optimizer—similar to Convex but operating across multiple blockchains. It automatically compounds rewards across various DeFi protocols to maximize returns.
Some pools offer eye-popping yields—especially for minor tokens—but whales tend to focus on stablecoin or stablecoin-plus-mainstream-asset strategies.
Even conservative Beefy pools often outperform competitors, helping it grow rapidly despite the bear market. Its multi-chain reach (BSC, Ethereum, Avalanche, etc.) adds diversification benefits.
Frequently Asked Questions (FAQ)
Q: Why are whales favoring stablecoin-based DeFi strategies?
A: Stablecoins reduce exposure to market volatility while still generating yield. In a bear market, capital preservation is key—making low-risk, steady returns more attractive than speculative gains.
Q: Is liquidity mining still profitable in a bear market?
A: Yes—but selectively. Platforms like Convex, Frax, and GMX offer sustainable yields when focused on stable or blue-chip assets. High-risk pools may promise big returns but often carry hidden dangers.
Q: What’s the safest way for retail investors to follow whale strategies?
A: Start with well-established protocols like Aave or Curve using stablecoins. Avoid overexposure to new or volatile tokens. Use small allocations to test higher-yield platforms like Beefy or GMX.
Q: How do whales avoid impermanent loss?
A: By focusing on correlated assets—like stablecoin pairs (USDC/DAI) or ETH/WETH—or using platforms that minimize exposure through dynamic strategies.
Q: Can I replicate whale-level yields with a small portfolio?
A: While absolute returns will differ, the same protocols are open to all. The key is risk management: prioritize security, use audited platforms, and diversify across chains and strategies.
Q: Are these DeFi platforms safe during a market crash?
A: Leading protocols have strong track records and audit histories. However, no platform is risk-free—especially during black-swan events. Always assess smart contract risks and avoid over-leveraging.
Final Thoughts: Where Is Your Money Now?
The actions of the top 50 whales suggest a clear trend: capital preservation through strategic yield generation. Instead of chasing moonshots, they’re parking funds in resilient protocols offering steady returns—mostly through stablecoins and blue-chip assets.
👉 Learn how top investors adapt their strategies when markets turn sour.
While this sample size isn’t exhaustive, it reflects broader sentiment: the smart money isn’t fleeing crypto—it’s repositioning within it.
Bear markets test conviction. But for those who plan wisely, they also create opportunity. Whether you’re staking on GMX, borrowing DAI on Maker, or optimizing yields via Convex and Beefy—the goal remains the same: protect principal, earn consistent returns, and stay ready for the next bull run.
So ask yourself: In this bear market, where is your money working?