2026-01-14 10:31:30

The pitfalls of DeFi lending, I've fallen into them

To be honest, I was once very resistant to DeFi lending functions—the feeling of being dominated by interest rate fluctuations and liquidation risks is really torturous.

The most memorable experience was borrowing USDT on a top lending protocol, with an apparent interest rate of only 2.3%. I thought this yield was quite stable, but then the market fluctuated wave after wave, and the entire liquidation pressure suddenly mounted. The anxiety at that moment... from then on, I was completely disappointed with DeFi lending functions.

But recently, I came across the project TermMaxFi, and it seems they are rethinking the logic of DeFi lending—from a more stable perspective, trying to design those risky and frightening aspects more reasonably. This approach is quite interesting.

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CryptoHistoryClass

· 01-17 01:23

ngl, this is literally the 2019 playbook all over again... statistically speaking, every time someone says "this protocol is different," liquidation rekt follows within 6 months. *checks notes* yeah, the pattern holds up remarkably well across cycles.

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DoomCanister

· 01-16 03:58

Oh no, the moment of liquidation is truly despairing. I've also experienced that feeling of mental explosion.

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BearMarketBuyer

· 01-14 17:58

2.3% interest rate? Ha, that's a trap. Once liquidation happens, it will vanish instantly.

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LiquidationWatcher

· 01-14 11:01

Bro, I understand your blood and tears story. That feeling of almost being liquidated is truly intense.

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MetaverseVagrant

· 01-14 10:59

Uh... 2.3% interest rate still dares to say it's low, fine, anyway, after liquidation, it's all gone.

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RetroHodler91

· 01-14 10:51

Bro, I also experienced the 2.3% one, a wave of correction directly broke the defense. Can TermMaxFi really improve liquidation pressure? I'm a bit skeptical, but to be honest, I'm also tired. However, the risk design in lending is indeed worth paying more attention to for better stability.

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SchroedingersFrontrun

· 01-14 10:51

A 2.3% interest rate can also be liquidated, which is outrageous.

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HalfPositionRunner

· 01-14 10:40

The 2.3% with big eyes and thick eyebrows was finally liquidated. LOL, this is the charm of DeFi.

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MetaverseLandlord

· 01-14 10:32

Oh wow, this really hit me right in the heart... I also went through the moment of liquidation, and that feeling was truly incredible.