2026-01-01 22:20:42

Here's what nobody talks about—leverage blowups aren't always about hitting liquidation. The real damage? Variable borrow rates will absolutely wreck you.

Scenario: You lock in a 5% borrow rate, markets pump hard, and suddenly you're paying 20% APY just to keep the position alive. Your collateral's up, your P&L looks good, but the interest is silently eating away at everything.

That's why fixed-rate borrowing is getting serious attention in DeFi right now. Lock your rate at 1%, and you sleep better knowing exactly what your costs are. Bull market goes nuclear? Your rate stays fixed. Bears come back? Still locked. No surprises, no liquidation spirals triggered by exploding fees.

If you're using leverage, this matters more than you think.

DEFI2,65%

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GateUser-bd883c58

· 6h ago

5% to 20% is directly siphoned off, this is the real killer of leverage...

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ServantOfSatoshi

· 6h ago

Floating interest rates are really the hidden killer; many people haven't realized this.

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MerkleDreamer

· 6h ago

Variable interest rates are really a trap—going from 5% to 20% instantly, no matter how good the paper gains look, it's useless... Fixed interest rates are the way to go.

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pumpamentalist

· 7h ago

5% suddenly becomes 20%, this is the real hidden way of harvesting profits...

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ReverseTrendSister

· 7h ago

Wow, I’ve been burned by the interest rate spiral explosion before. It’s really outrageous that it suddenly skyrocketed from 5% to 20%.

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Rugpull幸存者

· 7h ago

Damn, this is the real hidden killer. I was actually wiped out here before, as the interest rate jumped from 5% directly to over 20%. The account didn't look like it was liquidated, but the interest forcefully ate up the gains. I regret not locking in the interest rate earlier.

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PhantomHunter

· 7h ago

Variable interest rates are truly the silent killer... I've seen too many people get eaten alive by fees, clearly making a profit on paper but losing all the interest, can't hold on anymore.

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