Curve’s Soft Liquidation Model Allows Extended Loan Survival
- Curve tracked a total of 704 soft-liquidation instances.
- These instances lasted a median of 14.5 days.
- The data illustrates how some DeFi loans can endure weeks after entering the ‘danger zone.’
The findings from Curve highlight the resilience of certain DeFi loans, as evidenced by the median duration of soft-liquidation instances lasting over two weeks. This model offers borrowers a chance to manage their positions during market fluctuations.
Overall, Curve’s data shows that while facing liquidation risks, borrowers can maintain their loans for an average of 14.5 days, showcasing the effectiveness of its soft liquidation approach.
