[AC: Only About $50,000 Liquidated During FT's First Major Drawdown, Far Below Traditional LTV Models] BlockBeats News, June 6, Sonic co-founder Andre Cronje stated that during the first major market drawdown experienced by the derivatives platform FT (FlyingTulip), the equity account-based lending model resulted in only about $50,000 in liquidations. Due to the use of net risk calculation instead of a discounted collateral model, coupled with the implementation of a soft liquidation mechanism, the average liquidation amount per transaction was only $200 to $2,000. Andre Cronje pointed out that if a traditional loan-to-value (LTV)-based lending system had been used, the liquidation scale during this market fluctuation could have been 10 to 20 times larger. He stated that the equity account model enables net risk management and reduces market impact through the soft liquidation mechanism, providing a safer, less volatile, and lower discount loss lending experience. [Original Link]