Black Swan Lessons on Stable Returns: A Review of Major CEX Earn Products

Raheem Akingbolu

On October 11, the cryptocurrency market witnessed a sudden and sharp disruption when Earn products linked to USDE, BNSOL, and WBETH on the Binance platform experienced significant depegging. This led to widespread liquidations of leveraged positions and reignited conversations around the inherent risks in centralized exchange (CEX) Earn products that are often perceived as stable. The development serves as a reminder that even in a maturing crypto market, yield-bearing instruments remain exposed to sudden shocks. This report takes a closer look at the various types of CEX Earn products, highlighting their structures, associated risks, and how platforms like MEXC are working to ensure sustainable yield generation amid volatility.

Speaking on the platform’s resilience, MEXC’s Chief Operating Officer, Chen Wei, emphasized the exchange’s commitment to safeguarding user assets and maintaining yield stability even in adverse market conditions.

“At MEXC, we’ve built our Earn ecosystem around the principles of transparency, sustainability, and disciplined risk control,” said Chen. “Our focus has always been to help users ‘earn, not burn’—creating value through consistency rather than speculation. What happened on October 11 reaffirmed the strength of our approach and our responsibility to maintain trust, even in moments of extreme volatility.”

CEX-based Earn products generally fall into four broad categories, spanning from low-risk savings models to high-yield leveraged instruments. Simple Earn products represent the most basic form, operating similarly to savings or term deposit accounts offered by traditional banks. Users deposit digital assets into flexible or fixed-term accounts to earn interest, typically ranging between 5% and 20% APR, as seen with MEXC’s USDT Flexible Savings. The interest comes mainly from the exchange lending funds to institutions, traders, or staking protocols. These products are considered low-risk since principal funds are shielded from market swings and are ideal for users seeking liquidity and capital preservation.

On-Chain Earn products integrate decentralized finance (DeFi) protocols directly into centralized platforms. Users participate in staking or liquidity mining via their CEX accounts, without needing complex DeFi configurations. Yields are derived from DeFi reward mechanisms, though risks increase under market stress when liquidity crises can freeze assets or erode returns. These products cater to long-term holders seeking moderate, protocol-driven returns.

Dual Asset Investment products allow users to deposit a base asset and select a trading pair, target price, and settlement date. Settlement outcomes depend on market movements, and returns derive from platform arbitrage and volatility. While annualized yields are high, sharp price movements can result in unfavorable settlements or missed opportunities. Such instruments are best suited for investors seeking to optimize profit-taking or entry opportunities during market swings.

At the higher end of the risk spectrum are Leveraged Earn products, such as Bybit’s Margin Staked SOL. These allow users to borrow and reinvest using recursive strategies, amplifying both potential gains and losses. Although these products can yield significant annualized returns, they carry liquidation risks during market downturns and are intended for sophisticated traders with strong risk management practices.

Recent events have underscored the importance of resilient product design. The “10.11 incident” demonstrated that platforms heavily exposed to leveraged products faced severe disruptions, while others maintained stability. Among those that performed well was MEXC, whose Earn ecosystem continued operating without interruption.

MEXC Earn comprises four core product types—Flexible Savings, Fixed Savings, MEXC Hold and Earn;, and Futures Earn—each tailored to specific user needs. Flexible Savings provides liquidity and instant access to funds, allowing users to earn daily interest on deposited assets without lock-up periods. Fixed Savings, on the other hand, functions like a term deposit, offering higher interest rates in exchange for locking funds over a set period. Hold and Earn generates passive interest automatically on spot holdings, requiring no user action, while Futures Earn enables traders to earn interest on idle margin balances within their futures accounts, improving capital efficiency without affecting trading activities.

These structured layers reflect MEXC’s philosophy of balancing accessibility, sustainability, and risk control. The interest mechanism is transparent, avoiding speculative arbitrage or excessive leverage. Interest distributions occur automatically, allowing even first-time investors to benefit without complex setup. This low-entry approach has attracted a wide range of users, from beginners to experienced investors seeking consistent returns.

During the extreme volatility of October 11, when the crypto market saw over $19 billion in liquidations within 24 hours and Bitcoin dropped by 13%, MEXC Earnproducts remained stable. Flexible Savings and Hold and Earn products continued paying daily interest, Fixed Savings matured and settled normally, and Futures Earn maintained scheduled distributions. There were no delays, redemptions issues, or liquidity freezes, demonstrating the platform’s robust risk control framework.

Ultimately, the lessons from this episode highlight the value of sustainable yield strategies over speculative pursuits. As the adage goes, “Earn, don’t burn.” Rather than chasing unsustainably high returns, investors benefit more from steady accumulation and disciplined allocation. Reliable CEX Earn products like those offered by MEXC provide a viable hedge against market volatility, supporting consistent portfolio growth over time.