Tron (TRX) founder Justin Solar drew consideration to the extreme leverage downside within the Ethereum ecosystem in his submit from the X account.
Justin Solar addressed the Ethereum leverage subject and referred to as for proactive measures.
Solar famous that extreme leverage must be introduced beneath management slightly than ready for a crash that would wreak havoc on Ethereum protocols and decentralized finance (DeFi) initiatives.
He emphasised the necessity for early intervention and a coordinated answer.
Many traders are more and more utilizing leverage of as much as 50x (typically 100x) when buying and selling ETH on main platforms. This excessive leverage additionally results in extreme liquidation dangers when value volatility will increase.
“Within the quick time period, Ethereum additionally wants to deal with the widespread leverage subject.
“It will be higher to intervene early and unwind a few of the leverage slightly than watch for the protocols and DeFi initiatives to crash, inflicting losses. A negotiated answer is really useful.”
https://twitter.com/justinsuntron/standing/1899391401672216839
*This isn’t funding recommendation.
