Just tested @suilendprotocol, withdrawals are working fine, 44M/47M loan utilization rate. The USDC utilization rate on @navi_protocol is almost maxed out. I don’t have money in there to test, but it’s likely you can’t withdraw much. @Scallop_io has a 76% utilization rate, all good. For those who don’t quite understand why this happens, here’s a quick explainer: If a lending pool suddenly gets fully borrowed, one possibility is that a whale holding one or more collateral assets is pledging as much as possible to borrow USDT, potentially with no intention of repaying — basically someone cashing out and abandoning ship. In this scenario, if the price of the collateral asset crashes, liquidity drops to zero, and the lending protocol might not have enough time to liquidate the collateral at full value, causing a deficit in the pool. Here’s an example: Asset A has a leverage ratio of 30%, meaning you can pledge 100A to borrow 30U. Now, if the whale holding A pledges all their coins to borrow USDT, it’s essentially like selling at a 70% discount OTC. Then they dump the remaining A on the market, or even pull liquidity from DEX pools and cancel order books on CEX. At this point, the remaining market liquidity isn’t enough for the lending protocol to liquidate the collateral at at least 30% of its value, leading to losses for the protocol. This is why @lista_dao’s decisive early liquidation yesterday was so critical. In a liquidation death spiral, whoever acts fast stays safe; whoever hesitates sinks with the ship. The assets causing “issues” in these situations might not have inherent problems themselves, like underlying assets of wrapped tokens failing or anything like that. It could be something like: a team gets liquidated while trading, and they sell off everything they can, including their own tokens, and then disappear. In such cases, you can’t predict the source of risk at all, because the risk transmission isn’t caused by the mechanism itself. A famous example of this is when the CRV founder got liquidated back in the day. Wishing everyone safety and peace.