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Recently, someone asked me again, "Why did I get liquidated even though I didn't open any excessive leverage?"
I checked the on-chain records, and nine times out of ten, it's because the oracle feed price was slow by half a beat.
To put it simply, you're looking at the exchange's last traded price, the contract uses the oracle's last traded price, and with a delay, when the market suddenly drops, your position is already below the liquidation threshold in the protocol's eyes.
The liquidation bots don't negotiate; they just take you out as a midnight snack.
What's even more outrageous is that sometimes the price has already bounced back, but the feed price is still replaying "the last episode," and you'll experience that: the market looks fine, but the protocol feels like the end of the world.
Recently, modular and DeFi layer narratives have developers hyped up, but users are left confused.
I think it's quite similar: how the underlying assembly is cool, but in the end, those who don't pay attention to the details get unlucky.
Anyway, before I open a position now, I always check the oracle update frequency and feed source, and I don't dare to set my position too tight… just to keep my mental health intact.