Someone asked me what to do when the liquidation line is three steps away from the red line... I usually don't think about "bottom fishing and adding positions" first. I treat the position as if I could be kicked out at any moment. The first thing is to recalculate that bunch of lending parameters, especially whether the collateral's volatility is high, and whether the interest rate is quietly climbing, rather than just focusing on the health score.

Then choose one: either add a bit of the most stable collateral / repay some debt to widen the buffer; or simply actively reduce the position, accepting some loss is better than being liquidated, because that moment of liquidation is really painful.

Recently, everyone keeps comparing RWA and government bond yields to on-chain yield products. Honestly, the yields look similar, but the risk profiles are completely different... So now I care more about whether I can withstand the "worst-case scenario," preferring lower returns rather than pushing myself to the point where only psychological comfort remains before hitting the red line. Anyway, I’m the type who can’t sleep if I don’t reduce my position, so that’s how I’ll start.