When it comes to lending and borrowing, when the liquidation line is just three steps away, don’t think about “holding on a bit longer,” that’s basically emotions taking over. I usually do three things first: sell off a small portion of my position to bring the health factor back to a comfortable zone (not aiming for optimal, just avoiding liquidation); then check if the interest rate has suddenly increased, if it has, switch to another pool or simply repay part of it; finally, prepare the funds for stop-loss/repayment in advance, don’t wait until on-chain congestion or gas fees spike and leave you panicking. To put it simply, small funds can’t afford a liquidation in one go; if it gets liquidated, compound growth gets interrupted.

Recently, everyone’s been talking about modularity, Layer DA stuff, etc., developers seem pretty excited, but as a user, I mostly just want “can you not wake me up in the middle of the night with a liquidation notification”… Anyway, the rule is simple: get out before hitting the red line, don’t fight yourself. I’m off to work now.