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Liquidation

Liquidation occurs when a trader’s collateral is no longer sufficient to cover their leveraged position’s losses, triggering an automated forced closure by the exchange's liquidation engine. It is a critical risk-management mechanism that ensures the solvency of lending protocols and derivative platforms. In 2026, the focus has moved toward MEV-resistant liquidation models that protect users from predatory "cascades." This tag provides essential information on maintenance margins, health factors, and how to avoid liquidation in high-volatility environments.

14574 Articles
Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
Silo Finance Rolls Out Flexible Risk Isolation and 50% Revenue Sharing for xSILO Holders

Silo Finance Rolls Out Flexible Risk Isolation and 50% Revenue Sharing for xSILO Holders

Silo Finance launches v2 across EVM, expands ERC-4626 risk-isolated lending markets and returns 50% of protocol revenues to xSILO holders in USDC.

Author: Blockchainreporter

2025/09/11

Solana validators play delay games — Toly wants them punished

Solana validators play delay games — Toly wants them punished

The post Solana validators play delay games — Toly wants them punished appeared on BitcoinEthereumNews.com. Solana co-founder Anatoly “Toly” Yakovenko has called for Solana (SOL) validators who delay slots, steal rewards, and slow down the network to be punished. Yakovenko called for the punishments after becoming frustrated at validators using sophisticated delay tactics to gobble up extra fees and high-value transactions. Purposefully delayed slot times have become such an annoyance that one validator created a dashboard to illustrate the problem. Since August 5 — Solana epoch 829 — average slot time has increased 2.5%. “It’s the SOL price that should be rising — not the block time,” someone complained. One observer asked whether the delays could cascade into a “2.0” repeat performance of intentional leader reward boost (ILRB). ILRB is a timing tactic used by validators who want to deliberately delay block production. Extending slot times beyond Solana’s intended 400ms intentionally delays latency and allows them to unfairly pack more transactions into their blocks, capturing higher fees or rewards. At the expense of subsequent validators — who receive fewer and less valuable transactions — ILRB allows powerful leaders to earn more compute units during validation. Unconcerned about network efficiency, ILRB validators earn extra MEV opportunities, liquidations, or time-dependent transactions like NFT mints. Read more: Solana stocks keep falling as Wall Street pitches another $1B Solana co-founder wants to blast validators who delay block time Many people tagged Solana developers to work on solutions to the problem. Soon, Yakovenko chimed in. He agreed that there was an issue and recommended, “Drop these blocks by default for 10 slots” as punishment for the slow, powerful validators. He also repeatedly called for financial punishment for misbehaving validators, asking the network to “nuke from orbit” and retweeted a call to action for financial punishment. Got a tip? Send us an email securely via Protos Leaks. For more informed news,…

Author: BitcoinEthereumNews

2025/09/11

Top Cryptos Under $1 with Potential for Massive Bull Run

Top Cryptos Under $1 with Potential for Massive Bull Run

In a market still trying to find its feet after August volatility, a few cryptocurrencies under $1 are starting to catch investors’ attention with respect to the potential for growth. Mutuum Finance (MUTM) is one of those coins leading the charge. Mutuum Finance has been in the spotlight recently with its groundbreaking DeFi products and […]

Author: Cryptopolitan

2025/09/11

BONK Crashes 18%, AAVE Stalls at $92, BlockDAG’s Raised $404M

BONK Crashes 18%, AAVE Stalls at $92, BlockDAG’s Raised $404M

Crypto markets continue to test investor patience. BONK has dropped nearly 18% as interest cools and trading volumes shrink, while AAVE trades sideways near $92, showing stability but little momentum. The post BONK Crashes 18%, AAVE Stalls at $92, BlockDAG’s Raised $404M appeared first on CryptoNinjas.

Author: Crypto Ninjas

2025/09/11

In the past 24 hours, the total network contract liquidation was US$250 million, mainly due to the long position

In the past 24 hours, the total network contract liquidation was US$250 million, mainly due to the long position

PANews reported on September 10th that Coinglass data showed that over the past 24 hours, the cryptocurrency market saw $250 million in liquidated contracts across the network, including $155 million in long positions and $95.1081 million in short positions. The total amount of BTC liquidations was $52.618 million, and the total amount of ETH liquidations was $41.9696 million.

Author: PANews

2025/09/10

XRP Posts 3,042% Liquidation Imbalance as Inflation Surprises

XRP Posts 3,042% Liquidation Imbalance as Inflation Surprises

Due to epic inflation twist, XRP jumps 3,042% in liquidation imbalance

Author: Coinstats

2025/09/10

Gearbox deposits recover from 80% crash as users pour $250m into new lending market

Gearbox deposits recover from 80% crash as users pour $250m into new lending market

For some DeFi projects, when airdrop rewards dry up, it kickstarts a terminal liquidity decline from which they don’t recover.DeFi lending protocol Gearbox has defied that pattern.Last year, its total value locked fell 80% from its $410 million peak. Users caused the slump by abandoning Gearbox when opportunities to farm airdrops of restaking services like Renzo shrank. TVL is a metric that measures the amount of deposits to a DeFi protocol. Yet, Gearbox’s TVL has since bounced back to $340 million, DefiLlama data shows. The TVL includes funds borrowed on the protocol.“A significant aspect of Gearbox’s comeback strategy was integrating assets no one else can,” a Gearbox team member who goes by Mugglesect told DL News.For instance, Gearbox users can tap into illiquid assets available on protocols like Mellow Finance, a $430 million liquid restaking protocol. Mugglesect said Gearbox is betting that this growth is anchored in users actually leveraging the protocol rather than chasing the next speculative farming craze.Gearbox’s revival comes amid a resurgence in crypto’s lending sector that has pushed deposits to $130 billion, catapulting the sector to the summit of DeFi, even overtaking liquid staking, previously the biggest sector. Unique advantageGearbox is small compared to giants like Aave and Morpho, whose deposits are in the tens of billions of dollars. But it has a unique advantage: so-called credit accounts, Mugglesect said. These are smart contract wallets inside the Gearbox app that allow users to deploy leveraged capital across several DeFi markets for trading, staking, or providing liquidity.Users deposit approved collateral like Ether on Gearbox to open a credit account. Based on the account’s leverage limits, they can borrow multiples of their collateral to use as capital to stake on Lido to earn staking yield, provide liquidity on Curve to receive boosted rewards, or trade perpetual contracts.“You don’t just loop an asset, you borrow up to [40 times] your capital in a credit account and utilise it across DeFi, turning any integrated DeFi protocol leveraged,” Mugglesect said.“Credit accounts can also connect to assets that aren’t on [decentralised exchanges] or aren’t even tokenised, something traditional lending protocols can’t do.”Gearbox’s credit accounts offer composability, which means users can integrate across several DeFi markets via the platform. That’s not possible on other protocols, such as Aave, Morpho, or Compound. There, users must manually transfer borrowed funds to other DeFi apps if they want to farm or stake. Risk curatorsIn March, Gearbox launched a new lending market called Permissionless. It has been a major boon for the protocol, with credit accounts on Permissionless accounting for $250 million of Gearbox’s TVL.Permissionless features risk curators. These are DAO-approved managers who define the assets and DeFi strategies that can be used with a Gearbox credit account. They also set the allowable risk parameters, like leverage limits and liquidation thresholds, to keep credit accounts safe for users.Usually, the Gearbox DAO approves new assets that can be added to the protocol via a governance vote. “Permissionless enables risk curators to onboard new markets to Gearbox without the DAO intervention,” Mugglesect said.Under Permissionless, Gearbox has added five new blockchains and more than 25 markets to its lending stack while tripling the protocol’s market expansion, Mugglesect said.“The protocol is already on 27 [blockchains], the most of any lending protocol,” Mugglesect said. “We’ll be doubling down on more such integrations to create sticky growth.”Zero bad debtBut with crypto lending comes risks. As Gearbox swallows up more liquidity, the peril for lenders could increase.The team takes a proactive approach to unforeseen events by forking the networks eight times a day to test against black swan events, Mugglesect said.Gearbox has already proven its chops in navigating periods of market upheaval, Mugglesect said.Last year, ezETH, Renzo’s Ethereum liquid staking token, lost its peg to Ethereum due to confusion over the protocol’s airdrop. Users couldn’t redeem ezETH for Ethereum, and that caused a massive selloff on exchanges.The ezETH depeg caused $56 million worth of user positions to be liquidated, with $33 million of those losses happening on Gearbox due to the protocol’s popularity among restaking airdrop farmers. Yet Gearbox didn’t suffer any bad debt thanks to its design. That design separates lenders, risk curators, and active borrowers into different layers within the protocol. It even earned a profit from the ezETH depeg liquidation, whereas Morpho, the second-most affected protocol in the ezETH depeg incident, incurred about $34,000 in bad debt. The protocol boasts a bad-debt-free track record since its inception in 2021.Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. Got a tip? Please contact him at osato@dlnews.com.

Author: Coinstats

2025/09/10

How RWA-Backed Stablecoins Are Transforming Crypto Finance?

How RWA-Backed Stablecoins Are Transforming Crypto Finance?

How RWA-Backed Stablecoins Are Transforming Crypto Finance? The cryptocurrency industry has witnessed exponential growth over the last decade, introducing innovative financial instruments, decentralized finance (DeFi) platforms, and novel forms of digital money. Among these innovations, stablecoins have emerged as critical assets for traders, investors, and institutions looking to mitigate volatility while maintaining the benefits of blockchain technology. Recently, a new class of stablecoins, known as RWA-backed stablecoins, has begun to reshape the crypto finance landscape, bridging the gap between digital assets and tangible real-world assets. In this blog, we explore what RWA-backed stablecoins are, how they function, their integration into the crypto ecosystem, and the transformative impact they are having on crypto finance. What Are RWA-Backed Stablecoins? Stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to a reserve asset, traditionally fiat currencies like the US Dollar (USD) or Euro (EUR). While fiat-backed stablecoins have been widely adopted, they still face challenges such as centralization risks, regulatory scrutiny, and limited transparency regarding reserves. RWA-backed stablecoins, or Real-World Asset-backed stablecoins, take a different approach. Instead of being backed solely by fiat currency or other digital assets, these stablecoins are collateralized with tangible, verifiable real-world assets, such as: Commercial real estate Bonds and debt instruments Commodities like gold or silver Infrastructure projects Treasury securities By linking digital tokens to real-world assets, RWA-backed stablecoins aim to provide greater stability, transparency, and trust, making them particularly appealing to institutional investors and businesses seeking reliable on-chain collateral. How RWA-Backed Stablecoins Work? The mechanism behind RWA-backed stablecoins involves several key steps: Asset Acquisition and Verification A trusted custodian acquires or holds real-world assets as collateral. These assets are then verified and documented to ensure their legitimacy and value. Token MintingOnce authenticated, stablecoins are minted on the blockchain, with each token representing a stake in the underlying asset. Smart Contract ManagementThe stablecoins are managed via smart contracts, ensuring automated issuance, redemption, and compliance. These contracts also enable transparency, as users can verify collateral reserves on-chain. Redemption and LiquidationUsers can redeem RWA-backed stablecoins for the underlying assets if needed. In cases where the stablecoin value drops due to market fluctuations, smart contracts can trigger partial liquidation to maintain stability. This system combines the security and programmability of blockchain with the tangible value of real-world assets, creating a hybrid financial model that addresses many of the shortcomings of traditional stablecoins. The Advantages of RWA-Backed Stablecoins

  1. Enhanced StabilityUnlike fiat-backed stablecoins, which may be affected by central bank policies or banking risks, RWA-backed stablecoins derive their value from tangible, real-world assets. This ensures that their value remains more stable over time, particularly during market turbulence.
  2. Transparency and TrustOne of the main criticisms of fiat-backed stablecoins is the lack of transparency regarding reserves. RWA-backed stablecoins often include audited asset documentation and blockchain verification, allowing users to see exactly what backs each token. This builds trust among institutional and retail investors.
  3. Greater Regulatory ComplianceRWA-backed stablecoins can facilitate compliance with financial regulations, as the assets backing them are often subject to standard financial oversight. This makes them an attractive option for businesses seeking legitimate, legally recognized collateral for DeFi applications.
  4. Access to Traditional FinanceBy tokenizing real-world assets, RWA-backed stablecoins allow crypto investors to gain exposure to traditional financial markets without leaving the blockchain ecosystem. For example, a stablecoin backed by commercial real estate can provide users with a decentralized way to invest in real estate.
  5. Improved DeFi OpportunitiesRWA-backed stablecoins expand the DeFi ecosystem by providing a more secure and less volatile form of collateral. Lending platforms, decentralized exchanges, and yield farming protocols can integrate these stablecoins to reduce risk and attract institutional capital. Key Use Cases of RWA-Backed Stablecoins
  6. Decentralized Lending and BorrowingStablecoins are already a cornerstone of lending protocols like Aave, Compound, and MakerDAO. With RWA-backed stablecoins, lenders can reduce the risk of collateral volatility, while borrowers gain access to a more stable borrowing currency.
  7. Cross-Border PaymentsDue to their stable value and transparency, RWA-backed stablecoins are ideal for cross-border payments and remittances. Businesses and individuals can transfer money quickly, securely, and with lower fees, bypassing traditional banking intermediaries.
  8. Tokenized Real Estate and InfrastructureInvestors can gain fractional exposure to real estate, infrastructure projects, or commodities through RWA-backed stablecoins. This democratizes access to high-value assets and increases liquidity in traditionally illiquid markets.
  9. Hedging and Risk ManagementRWA-backed stablecoins provide a reliable tool for hedging against cryptocurrency volatility. Traders and institutions can park value in a stable asset while maintaining exposure to DeFi ecosystems.
  10. Institutional AdoptionBy combining regulatory compliance, transparency, and asset-backed stability, RWA-backed stablecoins attract institutional investors, bridging the gap between traditional finance and blockchain technology. Challenges in Integrating RWA-Backed Stablecoins Despite their promise, RWA-backed stablecoins face several challenges:
  11. Regulatory UncertaintyWhile RWA-backed stablecoins can facilitate compliance, the regulatory landscape for tokenized real-world assets is still evolving. Countries may impose different rules regarding custody, issuance, and trading.
  12. Custody and Audit ComplexityMaintaining custody of real-world assets and regularly auditing them can be complex and costly. Any mismanagement may undermine the stablecoin’s credibility and value.
  13. Liquidity RisksUnlike fiat-backed stablecoins, some real-world assets are less liquid. Selling or redeeming tokens backed by these assets may take longer, potentially affecting price stability in volatile markets.
  14. Smart Contract VulnerabilitiesWhile blockchain ensures transparency, smart contracts are not immune to vulnerabilities. Integration with RWA-backed stablecoins requires robust contract development and rigorous security audits. Examples of RWA-Backed Stablecoins Several projects are pioneering the use of real-world assets in stablecoin design: MakerDAO’s Multi-Collateral DAI — Although primarily crypto-backed, MakerDAO is exploring integration with real-world assets like bonds to diversify collateral. Centrifuge / Tinlake — Allows real-world assets such as invoices, real estate loans, and trade receivables to be tokenized and used as DeFi collateral. Stably — Offers stablecoins backed by traditional assets with strong regulatory oversight. These examples highlight the growing trend of bridging real-world finance and blockchain technology. The Transformative Impact on Crypto Finance RWA-backed stablecoins are set to transform crypto finance in multiple ways:
  15. Increased Stability Across the EcosystemBy tethering digital assets to real-world collateral, stablecoins can resist extreme crypto market volatility, reducing systemic risk across lending platforms, exchanges, and trading protocols.
  16. Expansion of DeFi into Traditional FinanceTokenized real-world assets allow DeFi platforms to tap into previously inaccessible markets, such as commercial real estate, bonds, and commodities, making DeFi more inclusive and globally relevant.
  17. Institutional ParticipationInstitutions, previously wary of cryptocurrency volatility and regulatory ambiguity, are now showing interest in RWA-backed stablecoins. This infusion of institutional capital could accelerate mainstream adoption.
  18. Improved Risk Management ToolsFinancial professionals can use RWA-backed stablecoins to hedge, collateralize, and manage risk more effectively, creating a more robust and professionalized DeFi ecosystem.
  19. Enhanced Trust and TransparencyTransparency regarding the underlying assets reassures both investors and regulators, increasing confidence in blockchain-based financial instruments. Future Outlook The future of RWA-backed stablecoins looks promising. Key trends likely to shape this market include: Increased Regulatory Clarity: Governments are gradually providing guidance for tokenized assets, encouraging responsible innovation. Cross-Border Integration: Stablecoins could streamline global payments and remittances, reducing dependency on fiat and correspondent banks. Hybrid Financial Models: Combining digital and real-world assets could become standard, creating more resilient financial systems. Institutional-Grade Products: Banks and investment firms may issue or support RWA-backed stablecoins as part of their asset management strategies. In essence, RWA-backed stablecoins are not just another crypto innovation — they represent a fundamental step in bridging traditional finance and decentralized technology. Conclusion RWA-backed stablecoins are redefining the boundaries of cryptocurrency finance. By linking digital assets with tangible real-world collateral, they provide stability, transparency, and trust that traditional stablecoins often lack. From improving DeFi protocols to enabling institutional adoption and cross-border payments, these tokens are paving the way for a more resilient and inclusive crypto financial ecosystem. As the blockchain industry matures, RWA-backed stablecoins will likely play a pivotal role in integrating traditional finance with decentralized systems, making them one of the most transformative innovations in modern crypto finance.
How RWA-Backed Stablecoins Are Transforming Crypto Finance? was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story

Author: Medium

2025/09/10

Why You Should Buy This Top Altcoin As Trump-Linked WLFI Faces Accusations of Withholding Funds

Why You Should Buy This Top Altcoin As Trump-Linked WLFI Faces Accusations of Withholding Funds

The post Why You Should Buy This Top Altcoin As Trump-Linked WLFI Faces Accusations of Withholding Funds appeared first on Coinpedia Fintech News Trump-linked World Liberty Financial (WLFI) is facing rising criticism after several early backers accused the project of blocking withdrawals. Ethereum developer Bruno Skvorc revealed that his holdings were frozen when WLFI flagged his wallet as “high risk.”  Tron founder Justin Sun has also disclosed that his US$75 million stake is stuck, intensifying debate about governance …

Author: CoinPedia

2025/09/10

Next Crypto to Hit $1? DOGE and SHIB Are Old Stories Now, But This Undervalued DeFi Crypto Recently Raised $15.5M Looks Ready

Next Crypto to Hit $1? DOGE and SHIB Are Old Stories Now, But This Undervalued DeFi Crypto Recently Raised $15.5M Looks Ready

The world remembers the meteoric rise of DOGE and SHIB. Both captured headlines, fueled by social media hype and meme culture. Yet, beyond the excitement, their practical utility remains limited. Retail investors and institutions alike are learning that nostalgia and hype do not sustain long-term returns. Enter Mutuum Finance (MUTM), a DeFi token designed for [...] The post Next Crypto to Hit $1? DOGE and SHIB Are Old Stories Now, But This Undervalued DeFi Crypto Recently Raised $15.5M Looks Ready appeared first on Blockonomi.

Author: Blockonomi

2025/09/10

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