🎃 TRICK OR TREAT: Which scenario is the spookiest?
Monsters and ghosts👻 scare us😨 for one night🌕, but in crypto, the real terror strikes when you open a position without checking the order book depth or the protocol structure. 📉
For Halloween night🧙🏻♀️, we're kicking things off with a challenge for the community.
I'll present some terrifying scenarios, and you have to choose which situation you'd rather be in to survive 😮💨 and explain why you chose it. Today...
🦇 Option A: The "Trick" (50x leverage in illiquid markets)
Entering a position with extreme leverage to chase the current green candle, while ignoring the Fully Diluted Valuation and scheduled token unlocks.
The risk: A midnight "scare," courtesy of liquidation bots 🤖, and a downward wick caused by a lack of order book depth. 👻💥
🕸️ Option B: The "Treat" (Yield farming in a protocol with bad debt)
Depositing collateral in a DeFi pool offering an attractive APY without auditing its Loan-to-Value parameters or its Safety Module for deleveraging events.
The risk: Getting stuck in a liquidity crisis when liquidation bots fail to settle the network's bad debt. 📊🛡️
Leave your verdict in the comments:
Which of the 2 scenarios do you think is less dangerous?
What other spooky scenarios can you think of for our next Trick or Treat? We'll keep turning up the terror 🧟♂️
Happy Halloween, everyone! 👇🦇🍬
$BTC $ETH $BNB #Halloween #Crypto #BinanceSquare
Monsters and ghosts👻 scare us😨 for one night🌕, but in crypto, the real terror strikes when you open a position without checking the order book depth or the protocol structure. 📉
For Halloween night🧙🏻♀️, we're kicking things off with a challenge for the community.
I'll present some terrifying scenarios, and you have to choose which situation you'd rather be in to survive 😮💨 and explain why you chose it. Today...
🦇 Option A: The "Trick" (50x leverage in illiquid markets)
Entering a position with extreme leverage to chase the current green candle, while ignoring the Fully Diluted Valuation and scheduled token unlocks.
The risk: A midnight "scare," courtesy of liquidation bots 🤖, and a downward wick caused by a lack of order book depth. 👻💥
🕸️ Option B: The "Treat" (Yield farming in a protocol with bad debt)
Depositing collateral in a DeFi pool offering an attractive APY without auditing its Loan-to-Value parameters or its Safety Module for deleveraging events.
The risk: Getting stuck in a liquidity crisis when liquidation bots fail to settle the network's bad debt. 📊🛡️
Leave your verdict in the comments:
Which of the 2 scenarios do you think is less dangerous?
What other spooky scenarios can you think of for our next Trick or Treat? We'll keep turning up the terror 🧟♂️
Happy Halloween, everyone! 👇🦇🍬
$BTC $ETH $BNB #Halloween #Crypto #BinanceSquare
