When markets turn turbulent, floating rates don't just move—they explode.



Borrowers face liquidation cascades. Lenders can't forecast yields. Capital evaporates right when liquidity matters most.

Look deeper though. The real issue isn't market volatility itself. It's the rate mechanism underneath. Poorly designed interest structures create systemic fragility across DeFi protocols.
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Frontrunnervip
· 7h ago
Floating interest rates explode, chain liquidation directly takes off, who can withstand this?
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GateUser-4745f9cevip
· 7h ago
Honestly, the floating interest rate mechanism is a ticking time bomb; a market wave can wipe everything out in one go.
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FUD_Vaccinatedvip
· 7h ago
The floating interest rate mechanism is poorly designed; each sharp decline clearly reveals it.
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MetaDreamervip
· 7h ago
Basically, it's just that the DeFi interest rate mechanism is garbage, no wonder there are daily explosions.
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WhaleShadowvip
· 8h ago
Floating interest rates explode at the slightest increase; this DeFi design is truly brilliant, but a collapse is inevitable sooner or later.
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HashBanditvip
· 8h ago
lol this hits different after what happened to my liquidation position in '22... floating rates are literally the TPS bottleneck of lending, ngl. bad rate design = network congestion but make it financial, this is why rollups matter
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