When the loan position reaches the liquidation line in three steps, I usually don’t gamble with my luck anymore… First, prioritize “staying alive”: either add some margin to push the line further away, or simply reduce the position and return some, don’t think about waiting for a rebound to save you. After watching on-chain for a while, you realize that liquidation isn’t bad luck; it’s you providing liquidity to others.

Recently, there’s been a lot of comparisons between RWA, U.S. Treasury yields, and on-chain returns, right? Honestly, the returns look attractive, but once your position approaches the red line, that small profit isn’t enough to cover a single slippage plus transaction fees. I’m tired but still here; anyway, I’d rather earn a little less now than wake up in the middle of the night to a liquidation alert.