As Curve Averts DeFi Death Spiral, Fiasco Exposes Serious Risks

“I do not essentially suppose it is a signal of unethical habits, but it surely does open up dangers – precisely as you’ve got seen happen – and the dangers aren’t too arduous to foretell,” remarked Powell. “If in case you have a $100 million mortgage, and you’ve got that on leverage, and it is towards your token, there’s an opportunity your token might drop in worth and also you’ll must liquidate it to cowl your self.”