Position management strategy drawn from on-chain security incident post-mortems: the third-party adapter FlashLoopAdapter has a vulnerability, and the attacker cleared the collateral from two Safe multi-sig wallets. The problem lies in the adapter layer that connects to the Aave ecosystem; the Safe itself is fine. When running leveraged looped borrowing positions, don’t put all your collateral fully into a single third-party integration. And having a multi-sig is not the same as absolute security.
AAVE’s current price is $178.62, up 3.5% over the past 24 hours. The main protocol’s pricing hasn’t changed much. But leveraged loop positions are the first to be liquidated when there’s bad news. Keep a buffer by maintaining a collateralization ratio of 30% or higher, and ensure the exposure to a single protocol does not exceed 20% of the principal.
#AAVE
AAVE’s current price is $178.62, up 3.5% over the past 24 hours. The main protocol’s pricing hasn’t changed much. But leveraged loop positions are the first to be liquidated when there’s bad news. Keep a buffer by maintaining a collateralization ratio of 30% or higher, and ensure the exposure to a single protocol does not exceed 20% of the principal.
#AAVE