The Market is so Hot, How to Hedge Risk?
DeFi users are like lobsters in boiling water. As prices fall, their capital is on the brink of liquidation, yet most people are not aware of this. If prices continue to move adversely in the coming weeks, we may witness a liquidation cascade in DeFi. This will be a harsh first lesson in DeFi risk for new users. To date, DeFi users have not fully realized the risks and leverage used on the capital they have locked. They are no longer simple amateurs. Instead, they need to manage their accounts like managing margin exposure positions.