My current approach is pretty cowardly: my position is three steps away from the liquidation line, so I act as if I am already about to be liquidated—reduce when I can, add when I can, and don't expect to "hold on a little longer." The reason is simple: near the red line, you're not really trading; you're gambling with system fluctuations and slippage, the more you gamble, the more addictive it gets.



Specifically, I usually lower the leverage first (pay down debt / withdraw collateral), then raise the warning line a bit to leave some "error margin." Then I check the parameters: which oracle is used for collateral prices, how big the liquidation penalty is, whether liquidity is sufficient—otherwise, you think you're three steps away, but in reality, you might only be 0.3 steps away.

By the way, I want to complain that now L2s are arguing over TPS, fees, and ecosystem subsidies... These debates have little to do with whether you can smoothly repay or add collateral during liquidation. In other words, no matter how fast the chain is, if the pool isn't deep enough, it can still hit you hard. Anyway, I’d rather earn less than become a liquidation bot KPI.
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