@Huma Finance 🟣 $HUMA#HumaFinance The liquidation risk of DeFi lending protocols always exists, especially in the face of severe market fluctuations. humafinance has noticed the recent surge in the ETH re-staking sector, with a significant increase in the demand for liquidity re-staking tokens (LRT) for collateralized lending. However, the value of LRT is closely tied to the underlying ETH and staking returns. In the event of a black swan incident, the price of LRT may plummet, leading to the liquidation of lending positions. Therefore, users must carefully assess risks and reasonably control leverage when participating in LRT-related lending. At the same time, protocol parties should strengthen risk monitoring, adjust collateral ratios and liquidation parameters to ensure the robust operation of the system. Building a safer DeFi ecosystem requires the joint efforts of every participant.
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