2026-01-07 18:25:13

The true source of DeFi risk often doesn't lie in leverage itself. The real issue? Uncertainty.

Floating interest rate fluctuations, sudden price drops, unpredictable liquidation triggers—these are the key factors that can crush a position. Many people think risk management is just controlling leverage multiples, but it's much more than that.

When the market encounters scenarios you haven't considered and the model fails, that's the moment DeFi participants truly face risk. This is also why more and more projects are starting to redesign protocol mechanisms from a risk management perspective.

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BrokenDAO

· 7h ago

Basically, it's still the old trick of information asymmetry. You think you've built a model and calculated the risks correctly, but the market doesn't follow your script at all. That's why those protocols claiming "perfect design" all end up failing.

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NFTArtisanHQ

· 14h ago

uncertainty is the real liquidation oracle, not the leverage dial itself—this hits different when you realize most risk models are just beautiful abstractions waiting to break against black swan narratives

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MrDecoder

· 18h ago

That's so true. Leverage is just a facade; the real danger comes from those black swan events you never expect.

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WhaleSurfer

· 01-07 18:55

That's right, leverage is just a facade; the real danger lies in those things you can't calculate. The liquidation trigger point is the most critical.

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BearMarketBard

· 01-07 18:54

That's right, but I've still been liquidated several times... Those seemingly perfect models are just jokes in the face of black swan events, really.

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SolidityStruggler

· 01-07 18:54

Basically, it's a black swan; no matter how good the model is, it can't save you.

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IntrovertMetaverse

· 01-07 18:53

That's right, leverage is just a facade; the real chaos comes from those black swan events... Last time, I didn't expect stablecoins to decouple, and I got liquidated directly. Reading this article again makes me want to vomit.

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AirdropFreedom

· 01-07 18:51

You make some good points, but you still can't escape the fate of liquidation.

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