Let’s set the liquidation line in that lending position. Based on my experience, if you’re three steps away from the red line, don’t pretend to be calm… First, treat your position as if it could be “pulled away for a meeting tonight.” If you can reduce it, reduce a little—don’t think about averaging down and turning the situation around in one move. Then, switch your collateral to something with lower volatility, or simply add a bit of margin to pull the health score back up, so you can sleep more peacefully. If you really want to stubbornly hold on, that’s also fine—but at least make sure the reminders are turned on. Don’t wait for the chain to automatically “replay the review” for you.

Recently, the testnet incentives and the whole points program have once again set everyone’s expectations very high. I don’t know whether the mainnet will issue tokens, but in any case, when sentiment heats up, the volatility gets even more outrageous. In lending, the biggest fear is this kind of “collective hype.” For now, don’t treat liquidation as a cost of learning—it’s too expensive.