When it comes to 'liquidation', many people probably feel a tightness in their hearts. But to seasoned users familiar with Lista, a market crash, especially one driven by panic, isn’t necessarily a bad thing; it might actually hide opportunities. Let's think from a different perspective.
Let's imagine a scenario:
You have 1 ETH in your hands, and you're optimistic in the long run. You pledged it on Lista but are very conservative, only borrowing out USD1 worth 1000 dollars to arbitrage. You set your liquidation price very low, for example, it will trigger when ETH drops to 1500 dollars.
Suddenly, the market plummets by 20%. What is the usual reaction?
Done! My collateral has shrunk! How far is it from liquidation? Should I hurry to pay back? I won't get liquidated, right? It's all fear, being led by emotions.
What might a person well-versed in using Lista think?
"Volatility is here. My positions are very safe. But right now, the market is full of those cutting losses and those being forcibly liquidated due to high leverage... In Lista's own auction pool, there might be high-quality assets being sold cheaper than the market price."
His action list might be:
1. First check, no action: Take a glance at the positions, they're healthy, there's no need to rush into anything.
2. Bullet in the chamber: The USD1 profit accumulated from arbitrage or a specific reserve of stablecoins becomes the 'hunting funds' at this moment.
3. Either pick up at the auction or buy directly: You can use this money to check Lista's liquidation auction for discounted ETH or other good items. Or, more simply, directly buy those cheap chips being panic-sold on the exchange with USD1.
4. Strengthen your position: ETH bought at a cheap price can be deposited back into Lista as new collateral. When market rebound expectations are strong, you can borrow more USD1 to expand your cash flow 'engine.'
Where is the key to the shift in thinking?
· Consider borrowing as 'long-term low-cost funds': As long as your arbitrage profits can easily cover the interest, this debt is a 'good debt.' It ensures you always have 'money' in the market, so you won't be caught off guard.
· Consider profits as a 'volatility compensation fund': The stablecoins generated from arbitrage are not just income; they are also privilege vouchers that qualify you to 'sweep the market' during discounts.
· What role does Lista play here? It's not just a place to borrow money; it's a platform that allows you to leverage market sentiment. During a market surge, you can use it to convert unrealized gains into stablecoins; during market panic, it allows you to use the 'purchasing power' provided by debt to pick up bargains.
Thinking this way, are you still so afraid of volatility? You might even prepare for volatility in advance, even hoping for it to come and bring you cheap tickets to enter. This transforms the 'retail investor mentality' of following the market into the 'boss mentality' of managing your own capital.
