2026-01-17 15:29:16

In the early morning, I manually allocated 80% of my BTCB position as collateral, borrowed a stablecoin, and planned to arbitrage into a top-tier exchange's financial product with a 20% annualized return.

The market only shook briefly, and the health factor on the dashboard dropped directly from 2.0 to 1.2. The warning box kept flashing wildly, and the liquidation countdown started running. At that moment, I was in a state of chaos, thinking that the protocol's liquidation settings were extremely harsh, feeling like it was just waiting for users to be liquidated and collateral to be harvested. All the low-interest promotion was just a smokescreen.

The community also exploded, everyone cursing the protocol for operating in the dark, ready to liquidate big and small investors at any time—completely unplayable. I also got furious, opened the DEX to clear out my protocol tokens and dump the market, trying to run away and warn friends to avoid the trap.

Later, I calmed down and overnight analyzed on-chain data and official parameters, only to realize the truth was completely opposite—liquidation trigger line is set at a health factor of 1.05, so this fluctuation couldn't possibly trigger a liquidation; the warning system is just a friendly reminder; my collateral ratio was actually ridiculously high, with a safety buffer fully in place.

The actual borrowing cost stabilized between 0.8% and 1.2%, almost the same as free borrowing.

After realizing this, I doubled my collateral and continued borrowing stablecoins, throwing all of them into a top-tier platform's financial product.

Here are some key points from this practical experience:

**Using blue-chip assets like BTCB, ETH, BNB as collateral, borrowing stablecoins at nearly negligible cost**

**Transferring to yield platforms to lock in over 20% stable returns**

**The net profit margin can reach 18%-19%, and since the collateral itself is appreciating, it’s essentially a zero-risk operation**

The key is to thoroughly understand the risk parameters upfront, so you don’t get scared off by short-term fluctuations.

ETH-0,12%

BNB-0,59%

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MoodFollowsPrice

· 01-20 09:17

Haha, this is the legendary Leveraged Night of Horror, I've also fallen into this trap. The suffocating feeling when the health factor drops from 2.0 to 1.2 can really turn someone into a panic seller instantly, no wonder the community is in an uproar. But your later data analysis still remained clear-headed, unlike some people who just run away and never come back. That 0.8%-1.2% borrowing cost is indeed a freebie, much lower than the returns from stablecoin savings. The key is to look at the risk control settings of the platform on the other side; otherwise, this leveraged arbitrage setup may seem perfect, but a black swan event can still wipe it out. Countering with double collateral is a bold move.

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shadowy_supercoder

· 01-20 08:00

This guy went all in at 80% in the middle of the night after brain water, almost got liquidated and scared himself to pee haha. Then he doubled down on leverage. Now that's the true Web3 player style. --- Thank goodness he didn't dump and run, or he'd be the laughing stock. On-chain data shows it's all paper tigers. --- An 18% net profit margin sounds great, but are you really prepared if a DeFi platform suddenly runs away with your funds someday? Have you fully considered this risk, brother? --- A health factor of 1.2 is outright despair. Luckily, someone took the time to dig into the data; most people would have panicked long ago. --- A borrowing cost of 0.8%? That's a bit exaggerated. My stablecoin borrowing rate is at least 1.5%. --- When you collateralized twice as much again, did you get less panicked? I would definitely set a stop-loss order. --- This logic works perfectly in a bull market. When the bears come, collateral values plummet, and a 20% annualized return turns negative. The套路 is always the same.

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ContractExplorer

· 01-18 09:09

Haha, this wave was really a false alarm, but luckily I calmed down in time. Just looking at the numbers of the health factors was indeed frightening, but there are no secrets in on-chain data. Once you carefully analyze it, everything becomes clear.

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AltcoinHunter

· 01-17 15:59

Huh? Throwing 80% of your position like that? I always said lending protocols aren't that shady, but this leverage ratio is indeed extreme. Wait, 18%-19% net interest margin, and collateral is still appreciating? This logic feels a bit too smooth to me. It's really just an information gap. Most people won't analyze on-chain data at all; they get scared and cut their losses. My question is, how can these 20% financial products guarantee they won't collapse? That's the real risk. Honestly, your counter-collateralization this time is a bit aggressive. I prefer to be more conservative. A health factor of 1.2 sounds really scary, but you're right—getting panicked without understanding the parameters is just asking for trouble. How many people are about to go all-in on this strategy again... then wait to scream when the next wave of crashes happens.

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NFT_Therapy

· 01-17 15:57

Ha, this is the consequence of chasing quick profits. Those who panic and shake in the middle of the night end up having to make up lessons. Panicking like crazy, wanting to run without even looking at the data. Serves them right for being educated. This combination punch is actually just an arbitrage game. The key is not to panic, really. An 18-19% net difference looks impressive, but don't forget that the liquidation line is right there.

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0xSherlock

· 01-17 15:54

Haha, this wave of operations is truly a textbook-level nerve-wracking experience. It cracked me up. Going in during the early hours and getting scared straight to the liquidation line—how uncomfortable must that have been? But your later calm-down and data analysis response is what really shows professionalism. Most people would have already dumped and run, but this is the right attitude. An 18-19% net profit margin is indeed attractive, but bro, I still want to ask—won't this kind of leveraged arbitrage be a bit risky in a bear market?

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StableCoinKaren

· 01-17 15:52

This guy is really something. In the middle of the night, he was unclear and forced it through, then doubled the collateral behind his back... I have to be honest, an 18%-19% net profit margin sounds great, but the risk parameters really need to be understood thoroughly. Don't be blinded by the returns.

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