Recently, when adjusting leveraged borrowing positions, the whole matter of the liquidation line really feels like a firebreak path in the mountains—the closer you are to the red line, especially just three steps away, the easier it is to panic, and paradoxically the more likely you are to make things messy by moving around recklessly. Honestly, I’m quite afraid of the thought, “Just hold on a bit longer and it’ll pass.” Especially when RWA and on-chain yield products are compared side by side—everyone crowds into it all at once, and the liquidation line feels even closer.

My approach is pretty clumsy: keep plenty of buffer and operate in stages. Even if I end up earning a little less, I don’t want to be woken up in the middle of the night to top up collateral. Paying one extra step for safety—I’ll repay part of the debt a little earlier. Even if it means paying a bit more in fees, I’m not short on that amount; it’s just for peace of mind. After all, positions are like kindling—add them slowly so you don’t end up burning yourself.