Last night before bed, I checked the on-chain liquidation records, and suddenly I remembered this oracle thing: everyone watches the K-line, but in reality liquidations rely more on “price feeds.” Once the price feed is delayed, the market has already turned; your position is still calculating margin based on the old price. It looks pretty safe. Then, on the next update, it might directly give you a “price jump crash course,” slicing straight through the liquidation line all at once, and even the speed to add margin won’t help… Basically, you think there’s still time, but it doesn’t give you any.

Even when I’m working on something more on the stable side, I’ll still look at what oracle this protocol uses and roughly what the update frequency is. In extreme market conditions, I’d rather have a bit less leverage and leave some buffer. Also, I recently thought about the recent uproar over NFT royalties—on one hand, wanting creators to earn income, but on the other hand complaining that secondary liquidity is being slowed down… Actually, it’s pretty similar to oracles too: it’s all about the “delay and friction in rules/mechanisms,” and in the end, the ones who end up paying the bill are often the group that least wants to dig into the details. Anyway, I’ll have a sip of cold brew first, and take it slow.