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The risk of liquidation poses significant challenges in lending and borrowing. However, by understanding the underlying metrics like LTV and liquidation thresholds, and implementing well-structured strategies, one can mitigate these risks effectively.
Keeping a close watch on your positions and swiftly applying the mentioned strategies can create a safety net during volatile market conditions. If you have further questions or seek additional insights on managing lending and borrowing strategies, feel free to reach out or leave comments below.
Your financial journey in the DeFi space can be filled with opportunities when equipped with the right knowledge and tools.
Keep an eye on your LTV, understand your liquidation threshold, and apply these strategies to safeguard your assets.