Wow... that was a huge drop in prices all over the place... I guess that it is a bit due to some weird and slightly unnecessary trade war that has sparked up between allies. I think it is a bit of an empire in decline sort of thing... but I guess that time will tell what it is.
But, it has meant that the crypto ecosystem has tanked... and in a big way, I was seeing some 30 percent or more drops. And that means that it would be a great idea to check that there were no places where there were dangers of liquidations. I did just read that some crypto hedge fund (Scimitar?) got liquidated... again.
Now, I'm pretty cautious... and so, I don't borrow and I don't play with leverage. So, I'm pretty safe from all of that... but there were a couple of positions on Kamino that I needed to double check... I am playing around with JUPSOL/SOL leveraging at around 3.3 times... but seeing as JUPSOL is an LST (Liquid Staking Token) of SOL they shouldn't depeg like this. The danger is when the borrow rate of SOL is higher than the staking rate of JUPSOL for extended periods. So, that was okay...
... and then there was a JLP/USDC leverage at 1.8 times... that one is also fine and healthy... just down in size, but I had been pruning that for USDC all through the last few months.
The last on-chain thing was the borrowing of sUSD via Synthetix SNX staking... and that was getting really unhealthy... so, I pulled from Uniswap LP and some from Curve to fix that up. Thankfully, Optimism fees are pretty low, so that was quick and cheap to do.
And the last one was pretty funny... I am toying around with some AI-controlled futures bots on KuCoin at 5 times leverage... and before this crash, they were underwater... but for some reason, they had been placing shorts before this market crash.. and they were in profit again! So, I just shut them all down and took the little wins... LOL!
I'll probably start them up again, but seed them with the same small amount... just to see if they are worthwhile in the long run or not... at the moment, it has appeared that they just leech money over time, and you need to keep an eye on them and shut them down when they have won a decent enough return.
So... checking and unwinding, probably like everyone else in crypto. But it is one of these days where I'm happy that I'm just a cautious person that doesn't like to gamble with leverage!
Handy Crypto Tools
Ledger Nano S/X: Keep your crypto safe and offline with the leading hardware wallet provider. Not your keys, not your crypto!
Coinbase Wallet: Multi chain wallet with lots of opportunities to Learn and Earn!
Binance: My first choice of centralised exchange, featuring a wide variety of crypto and savings products.
WooX: The centralised version of WooFi. Stake WOO for fee-free trades and free withdrawals! This link also gives you back 25% of the commission.
GMX.io: Decentralised perpetual futures trading on Arbitrum!
Coinbase: If you need a regulated and safe environment to trade, this is the first exchange for most newcomers!
Crypto.com: Mixed feelings, but they have the BEST looking VISA debit card in existence! Seriously, it is beautiful!
CoinList: Access to early investor and crowdsale of vetted and reserached projects.
Cointracking: Automated or manual tracking of crypto for accounting and taxation reports.
KuCoin: I still use this exchange to take part in the Spotlight and Burning Drop launches.
MEXC: Accepts HIVE, and trades in most poopcoins! Join the casino!
ByBit: Leverage and spot trading, next Binance?
OkX: Again, another Binance contender?
Account banner by jimramones
Posted Using INLEO
I think this has definitely been a wake up call for a lot of people. They needed to be reminded that we are still in a very volatile market. My only regret is that I didn't hold off on some of my buys.
Yep, this will only happen after you buy something... but the name of the game is to avoid being nuked right!