When a lending position is only “three steps” away from the liquidation line, I usually stop and don’t add drama first: bring the health score back into the safe zone, pay off whatever you can, or reduce a bit of leverage to pull out part of the collateral—don’t count on “it bouncing back again.” Put simply, near the red line is where people are most likely to lose their cool. Those on-chain actions where it looks like a string of top-ups for margin just seem like they’re extending your emotions’ life support.



I’ll also take a quick look at how concentrated the liquidations are for similar positions—where, by price level, things are piled up—so I know what I’m dealing with. If it really drops, it won’t be just your position that gets liquidated; it’ll trigger a chain reaction. Lately, everyone has been chatting about modularization and the DA layer, and things are lively—but on the user side, people are actually pretty confused. As exciting as it is, position management is still better to be straightforward. When the tide goes out, the ones who are often first to end up exposed are the batch that’s “almost safe.”
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin