Sovari

I study systems beneath the surface....
Protocol researcher ➺ Writer

[Sovari @Sovari__]

@lxrtnoir Good morning L

It's truly getting out of hand

Have a lovely day

[Sovari @Sovari__]

@lxrtnoir Very necessary to keep that hunger

[Sovari @Sovari__]

One thing I really enjoy is learning about different topics

There's always something new to discover,

And I think that's one of the best parts of life.

Stay curious and keep learning...

Have a blessed day ✨

[Sovari @Sovari__]

@Emmamajek GM Justin

[Sovari @Sovari__]

@_JessaWrites Hope you enjoyed your day

[Sovari @Sovari__]

@Laloba_002 The protocols just have to always be prepared for the bad times

[Sovari @Sovari__]

DeFi lending keeps getting better at making capital work harder.

But I've been wondering if there's a point where that starts creating problems instead of solving them.

Protocols want more TVL and more borrowing,

While users want better yields and more ways to get value from the assets they already own.

That's why we keep seeing higher LTVs, more assets being accepted as collateral,

And rewards that encourage people to deposit their funds.

It works well when the market is doing real good.

But when things start to slow down, that same money can leave just as fast as it came in.

Someone who moved their funds for a better yield today might move them again tomorrow if another protocol offers more.

Borrowers may also start paying back loans when rates go up or the value of their collateral drops.

If a lending pool already has most of its liquidity tied up in loans,

There may not be enough left when lots of people suddenly want to withdraw.

That's why I think DeFi lending shouldn't focus only on squeezing every bit of efficiency out of capital.

Leaving a little more liquidity available and taking a more careful approach to risk might not produce the highest returns,

But it could make lending markets much stronger when conditions become unpredictable.

[Sovari @Sovari__]

@Emmakun985 That's righttt

[Sovari @Sovari__]

@0xOnyedika I'll post about that soon...

[Sovari @Sovari__]

@Emmaofweb3_ Happy Taco Tuesday

[Sovari @Sovari__]

@theBlurryface0 Congratulationsss on 700 followers

[Sovari @Sovari__]

@Web3Adii This is what it wants sadly 😭

[Sovari @Sovari__]

@Itss_Reen Hope you're having a good day?

[Sovari @Sovari__]

@Sonika_KK So we're already in the future as we've been saying

Hope it was a great experience?

[Sovari @Sovari__]

@Grant_the1st GM Grant

[Sovari @Sovari__]

@Letts_W Singing

That's a skill I'm truly passionate about

I actually wish I can bring it on here

[Sovari @Sovari__]

@Noyiwrites Noyi for the job!!

[Sovari @Sovari__]

@s33dkn33 Ohayou.. that's really unbelievable

[Sovari @Sovari__]

@goodness_web3 Good morning Goodyyy

[Sovari @Sovari__]

@Frtnel 200 followers soon...

Also I really do love the video on this post

[Sovari @Sovari__]

@unknxbt I know the pain😭

I hope you get a new one soon