2026-01-13 22:25:34

Playing with fire in DeFi lending can either lead to heavy losses or a lucky escape. The returns from cross-chain liquidity pools are indeed tempting, but the danger lies in high yields—market volatility can cause the entire position to collapse in an instant.

What do those who survive long in this market have in common? It's not the loudest shouts, but those who quietly monitor collateral ratios and leave enough buffer space. They understand a simple principle: greed for momentary pleasure leads to liquidation and ruin. Exercising restraint during borrowing, monitoring risk indicators, is always wiser than chasing extreme returns. This is not conservatism; it is the rule for surviving in the wild growth of DeFi.

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DefiEngineerJack

· 8h ago

well, *actually* if you're not running continuous liquidation simulations on your collateral ratios, you're basically just gambling with extra steps. the math doesn't care about your conviction, ser.

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DegenDreamer

· 01-14 01:35

Honestly, where are those people who used to boast about 100% APY now? Those who have never experienced a liquidation are not qualified to comment on DeFi. You really have to suffer losses to understand the importance of collateralization ratios. I used to obsess over yield rates every day, but now I’ve been the longest-lived. Really, restraint is easy to say, but when you see the neighboring position doubling again... resisting that moment of greed is how you make a profit.

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WalletDoomsDay

· 01-13 22:50

Really, those who boast about earning hundreds of percent monthly returns every day, now their graves are already two meters high with grass. I've seen someone get liquidated overnight, and they were still bragging in the group. It's better to honestly watch that collateral ratio, don't be greedy, this is the true way.

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CoffeeNFTrader

· 01-13 22:42

Really, I've seen too many people dazzled by high APY, only to be brought back to square one with a single liquidation. Honestly focusing on the liquidation price isn't shameful.

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