If you like Lao Lin’s content, forward and like this article and privately receive free Tugo Sniper Robot + Naked K practical tutorial guide. A veteran trader with “depth of thinking, emotional temperature, and data dimension”.
AAVE has been very popular in recent days. Lao Lin has never released any content on this target. Today we will talk about why AAVE and LINK are called bull market starters?
We won’t go into detail today about what AAVE is, nor what its advantages are. Anyone who knows that leverage is a tool in the industry knows the role of AAVE and LINK. Let’s talk about the current risks of AAVE today.
The first point: encountering liquidation problems under extreme market conditions, resulting in insolvency. Although there is a fund guarantee from the security module, on the one hand, activating the security module will inevitably require selling Aave to fill the bad debts, causing the price of Aave to fall; on the other hand, the current proportion of liquidated pledged funds in the security module has not reached 100%. What does this mean? Just like U, each U is not 1:1 anchored to the US dollar, so the project still has the risk of bankruptcy.
The second point: Smart contract or oracle vulnerabilities are exploited by attackers, resulting in project fund losses. The adverse consequences of this situation are similar to the previous one.
The third point: The team and community are not making smooth progress. For example, some plans are not implemented in a timely manner, causing the community and users to lose patience and sell.
In summary, we need to always pay attention to these risk issues. Finally, can AAVE be played? The answer is yes. In the entire bull and bear market cycle, we can do without other things, but we must do without leverage, so AAVE is called the bull market starter. When to enter again for those who missed the opportunity, we need to combine information, data, and indicators to make a layout. As long as you seize the opportunity, you will be done without hesitation.
Lin Muyang crypto:
A returnee from the UK with a master's degree in economics, he is proficient in C++, C#, Go, Java, Javascript and other blockchain technologies. He focuses on data analysis of the primary and secondary markets and macroeconomic trend analysis. He has developed his own "three-part theory" and verified its reliability through multiple market conditions. Follow Lao Lin to get the latest information.
