CrediBULL Crypto|Nov 11, 2026 20:22
Still a super underrated aspect of @CurveFinance's lending platform (LlamaLend).
On any other crypto lending platform, if the value of your non-stablecoin collateral drops enough because of a market dip, your position gets liquidated- and there is no coming back from that. Game over.
On LlamaLend, your position can enter a "soft liquidation" phase, which auto-converts portions of your otherwise volatile collateral into crvUSD as price moves against you, protecting the value of your collateral and therefore your borrowed position to avoid a "hard" liquidation. As the market recovers, it converts that crvUSD BACK into the original asset, (essentially buying back your original collateral with the accumulated crvUSD) so that your borrowed position can literally AVOID liquidation during unexpected market dips.
Quoted tweet below is a nice demonstration of this feature in action 👇
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