The Federal Reserve may implement an emergency 100 basis point rate cut next week, and there are even rumors on Wall Street that they might follow Japan's example and adopt negative interest rates. Once this news broke, many people started fantasizing: is the era of saving money losing value and borrowing to make money coming?

The market indeed exploded. Some are hyping a certain lending protocol as entering a golden age of "borrowing to mine," even suggesting directly mortgaging property to borrow stablecoins. It sounds tempting, but reality might hit hard.

That highly touted lending protocol uses an adaptive interest rate model, where the rate isn't set by the central bank but is determined in real-time by the supply and demand in the on-chain liquidity pool. On the surface, the goal is to keep long-term interest rates below 2%, but there's a critical trigger: if the pool utilization gets too high, the algorithm rapidly hikes the interest rate. It can jump from 1% overnight to 10% or even higher—something we've seen before.

Therefore, borrowing based on the "negative interest rate" fantasy is dangerously risky. My approach is this: before any borrowing strategy, perform a stress test. Suppose the interest rate suddenly jumps to 10% and stays there for a month—can my position still be profitable? If I can't pass this test, I won't touch even the most tempting lending opportunities.

In the world of DeFi, the true "central bank" is code. It won't compromise because of your stories; it will execute logic relentlessly.