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When the lending position is just three steps away from the liquidation line, I usually don’t argue with myself: first, bring the health level back to a sleepable range, add some collateral or pay off a small portion first, don’t expect the market to suddenly behave.
The second step is to prepare automation, such as alerts/stop-loss/ reserving gas, otherwise, during those few minutes of network congestion, people can instantly become helplessly furious.
The third step is to consider whether to reduce leverage, keep the position smaller, and have a much better mindset…
Honestly, liquidation isn’t an accident; it’s the result of procrastination.
Recently, a bunch of new L1/L2 projects are offering incentives to pull TVL, and veteran users complain about “mining, selling,” I get it.
It’s lively, but the liquidation line doesn’t play around with you.
Let’s see what’s next.