When using lending protocols for collateral allocation, many people think they are "diversifying risk," but in fact they are stepping into an invisible trap—collateral correlation risk.

Take BNB and slisBNB as an example. At first glance, they appear to be two different assets, but in reality, both are products of the BNB ecosystem. Putting them into the lending position simultaneously seems to diversify, but in essence, it is risk stacking. Once the BNB ecosystem adjusts, the values of both collaterals will drop together, and the liquidation risk actually concentrates.

On the protocol level, there is indeed a Debt Ceiling mechanism to control overall system risk, but this does not protect individual accounts. As a user, you need to set a "personal debt limit" for yourself. A smarter approach is to build a low-correlation asset portfolio—such as pairing BTCB with USD1—to truly smooth out collateral fluctuations.

Remember: don’t think that changing the name means changing the asset. Only when asset correlations are sufficiently low does diversification make sense. Otherwise, you are still holding the same risk.

Disclaimer: This content is for personal research sharing only, for reference purposes, and does not constitute any investment advice.