That kind of feeling of being three steps away from the liquidation line on a lending position—if you put it plainly, it’s when your heartbeat starts running ahead. My habit is to take “the worst-case scenario” into account in one go: if I really get speared/forced along by someone, can I still sleep at night? If I can, then don’t make too many moves; if I can’t, then quickly reduce some risk—adding a bit of margin works too, cutting some positions works too. Don’t expect to do anything at the very last step—those on-chain folks watching for liquidations are quicker than you.

Recently, with new L1/L2s rolling out incentives to pull TVL, people are both rushing in and complaining about digging, selling, and auctioning—truth is, it can also make liquidity swing between hot and cold, and liquidation prices are more likely to get touched. Anyway, I’d rather earn a little less than be someone else’s MEV snack. That’s it for now.