How Curve's soft liquidation model lets borrowers survive market drawdowns
60-second summary
Curve’s soft‑liquidation model records 704 instances, each persisting a median of 14.5 days, demonstrating that DeFi borrowers can remain active for weeks after crossing risk thresholds; the data shows loans avoid immediate forced sales, giving users time to rebalance collateral or repay. This resilience could lower default rates, encouraging broader adoption of flexible liquidation mechanisms in the crypto lending market.
Data tracked by lending platform Curve data tracked 704 soft-liquidation instances lasting a median 14.5 days, showing how some DeFi loans can survive for weeks after entering the 'danger zone.'