According to @intotheblock, liquidation risk is crucial when using lending protocols in DeFi. Analyzing these risks on platforms like DeFi Risk Radar can provide insights into potential vulnerabilities. Liquidation occurs when collateral value falls below a certain threshold, leading to forced asset sale to cover loan obligations, which is critical for traders to monitor to prevent losses.

According to Tetranode, Protocol FX offers liquidation protection by selling a portion of collateral at 88.8% Loan-to-Value (LTV) to maintain the LTV just below this threshold. This strategy effectively prevents liquidation by rebalancing the position to maximize long exposure at the bottom, thus avoiding funding fees and liquidation risks.

According to Tetranode, Protocol FX employs a 0 liquidation strategy by selling some collateral at 88.8% Loan-to-Value (LTV) to maintain the LTV just below this threshold. This approach allows traders to max-long at the bottom instead of facing liquidation, with no associated fees or liquidation events.

According to IntoTheBlock, USDC's exposure to Morpho is approximately 0.15% of total USDC collateral, indicating minimal risk exposure to potential bad debt for USDC lenders. As exposure levels change, lenders are advised to track their positions and adjust strategies accordingly.

According to Ai 姨, the second largest Ethereum whale has strategically avoided liquidation by adding 2,600 ETH as collateral and repaying 320,000 DAI of their loan. This increased their safety margin compared to the largest whale. Currently, the whale has collateralized 63,410 ETH and borrowed 74.42 million DAI, with a liquidation price at $1,701.83, providing a significant buffer.

According to @EmberCN, Maker's oracle updated its price to $1784.6 at 7:00, which is below the liquidation price of $1787.8 for a position holding 64,800 ETH. Without additional collateral or repayment before the update, partial liquidation will occur. The account holder has 50 minutes left to act.

According to Ai 姨, a whale with a $230 million lending position is nearing liquidation, bringing attention to on-chain liquidation mechanisms. The whale's position is at risk because the collateral value is only 58%, which is below the required threshold. Despite the CEX price falling below the liquidation price, the position has not been liquidated due to differing mechanisms used by CEXs. Debank's health indicator is crucial for understanding these thresholds.

According to Ai 姨 (@ai_9684xtpa), MakerDAO's liquidation mechanism is fundamentally different from those used by centralized exchanges. MakerDAO utilizes a decentralized process where collateral is auctioned off to the highest bidder, which contrasts with centralized exchanges that typically utilize a more instantaneous liquidation process to recover funds. This difference impacts how traders manage collateralized debt and risk, with MakerDAO's method potentially offering more time and flexibility. Source: Ai 姨 on Twitter.

According to Ai 姨, a prominent trader's single cryptocurrency wallet holds assets valued at $31.43 million. This significant value indicates that the trader can continuously avoid liquidation by simply adding more collateral. The trader is heavily involved in Berachain, with half of their assets on Ethereum and the other half on Berachain, enhancing their strategic positioning in diverse blockchain ecosystems (source: Ai 姨).

According to @adam3us, the fact that GameStop ($GME) holds Bitcoin (BTC) as hard collateral could present a strategic advantage for those involved in Reddit-driven short squeeze activities. The integration of BTC potentially strengthens GME's financial position, making it an attractive asset for traders focusing on short squeeze opportunities. This development is significant for market participants who understand the interplay between cryptocurrency holdings and stock movement dynamics.

According to EmberCN, a significant Ethereum collateral position of 60,810 ETH, valued at $114.48 million, faces a liquidation price at $1,805. This is merely $80 away from the current ETH price, posing an immediate risk of liquidation for the borrowed 75.69 million DAI. Traders should monitor ETH price movements closely as this could lead to significant market volatility.

According to Ai 姨, the whale trader redbase.eth, who previously incurred a loss of $1.069 million from ETH trading since March 9, has leveraged long 4,159 ETH valued at $7.8 million. Using 2.5 million DAI, he initially purchased 1,322 ETH, then continued to leverage by using the acquired ETH as collateral to borrow more stablecoins. Currently, he has collateralized 4,150 WETH to borrow 5.35 million DAI with a health factor of 1.14. This action comes as ETH's price dropped to $1,676.

According to Coinbase International Exchange, Ripple $XRP can now be used as collateral for perpetual futures trading on their platform. This development offers traders greater flexibility and efficiency in managing their positions, potentially increasing $XRP's utility and demand in the trading community.

According to EmberCN, a crypto address is at significant risk with 60,810 ETH ($114.89M) as collateral for a 75.43M DAI loan, having a liquidation price of $1,798. This situation is highlighted as highly precarious, similar to another case involving 67,000 ETH. Source: EmberCN's tweet sponsored by Bitget.

According to Lookonchain, another whale on Maker is facing liquidation with 60,810 $ETH ($109M). The liquidation price is $1,798.64, while the market price has dropped to $1,791. However, with the next oracle price on Maker still at $1,806.31, there's a chance for the whale to deposit more collateral to avoid liquidation.

According to Lookonchain, a whale on Maker is at risk of liquidation with 60,810 ETH ($109M) as the market price drops to $1,791, below the liquidation price of $1,798.64. However, the oracle price on Maker remains at $1,806.31, providing a window for the whale to deposit more collateral to avoid liquidation.

According to EmberCN, the Maker oracle price is set to update to $1,806. If ETH does not rebound above its liquidation price before this update, or if the position holder does not add collateral, the position will face liquidation post-update. This situation highlights the importance of monitoring oracle updates and collateral levels to avoid liquidation risks. Source: EmberCN's tweet sponsored by Bitget.

According to EmberCN, a whale/institution with 65,000 ETH at risk of liquidation has transferred 2,000 ETH ($3.75M) from Bitfinex and 1.54M USDT from Binance to bolster collateral and repay loans, reducing the liquidation price from $1,932 to $1,836. Despite this adjustment, the position remains precarious with ETH price only $50 above the liquidation threshold. The majority of the collateral ETH is reportedly...

According to PeckShieldAlert, an address (0x4706...c88d) was liquidated for 13.59 WBTC, valued at approximately $1.13 million, when the price of WBTC fell below $84,000. This liquidation event highlights the critical importance of monitoring collateral levels in volatile markets.

According to PeckShieldAlert, a cryptocurrency address was liquidated for 42.30 WBTC, approximately valued at $3.71 million, as the price of WBTC fell below the $85,000 threshold. This event underscores the importance of monitoring collateral levels and price movements in volatile markets for traders.