Don't frame liquidations as "amazing"

I wasn’t over-leveraged but some people lost thousands of dollars today.

I don’t know why Howard feels the need to dig into people who lost hard earned money investing in this project and got wrecked during a cascade of liquidations.

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I avoided liquidation by a miracle. That liquidation cascade sent my debt ratio from 38% to 99% overnight and gas fees were absurd. I spent several hundred in fiat dollars trying to on-ramp eth for gas to protect the position and I was still too slow and was saved by sheer luck.

I get it that liquidity issues are frustrating Unfederal reserve but that was nearly catastrophic for me. I’m still crapping my pants figuring out what to do bc it seems like the token could drop another 50% instantly at any time and I really would prefer buying mroe ersld than repay the loan when it is cheapest it has ever been

He didn’t say that liquidations are amazing. Stop putting words in his mouth. He said the correction freed up liquidity. That’s a fact. To avoid liqudiatons people sitting on loans for months or years had to pay them off. The platform was struggling with liquidity cuz people were literally never going to pay off their loans.

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“Amazing how a little correction frees up platform liquidity”

But it wasn’t a little correction, the price went down around 35% in 12 hours. That’s a precipitous drop in one day, even in crypto. Not everyone saw that coming and got liquidated.

Adam, you even told us a month or two ago on Twitter that we have 1 month left to accumulate eRSDL before the project recovers. What has happened since then? It’s actually gone down further. My point is the volatility of the project has evaded a lot of us, you included.

I agree people were sitting on loans for months to pay them off (not years) the platform went live in May. Maybe some of those people stuck in limbo were unable to pay off their loans due to excessively high gas fees? A lot of liquidations were smaller wallets. It’s presumptuous to assume “people were literally never going to pay off their loans”. Please don’t accuse me of putting words in his mouth. Whether it was a slip of words or not on his part, it’s the wrong tone to set that on a day when folks got liquidated to tweet out.

I paid more in exchange fees and gas for total of 3 loan repayments than I accumulated in interest on my $30k loan over months.

I wish I could repay my USDC loan in $1000 increments and only pay like $20 for the service. But it costs between $100-$400 depending on route and network congestion.

Brutal

This is why we must continue shouting and stomping our feet. The protocol works, it’s safe and well designed from a UI standpoint, but it is too expensive to even utilize.