Flight to Safety Evaluating Stablecoin’s Role as a Safe-Haven Asset in DeFi Markets

2026

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AI-generated summary

1) This paper investigates whether stablecoins, specifically Tether (USDT), act as a safe-haven asset in decentralized finance (DeFi) markets during periods of stress, offering crucial insights for regulatory frameworks.
2) * Examines USDT's role in systemic liquidity across Ethereum and Bitcoin markets using an event study approach.
* Analyzes how different investor types (whales vs. retail) reallocate capital during market stress.
* Explores network-specific flight-to-safety behaviors and their implications for regulatory calibration.
3) Stablecoins, DeFi, Safe Haven, Cryptocurrency, Volatility

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