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That recent wave of intense volatility caused many to panic, but those in the know have long been watching the liquidation zones. I managed to earn 600U in just a few minutes by capitalizing on this time gap.
Few people truly understand how the liquidation modules of certain lending protocols operate. In simple terms, when a position is liquidated, their collateral assets are sold off at a discount. Currently, this discount range is around 4%. During the last major correction, I saw several high-leverage positions get liquidated directly, with the system packaging these assets and listing them on the liquidation market.
I quickly snatched up a few assets at a 96% price, then sold them at market price on other platforms, locking in nearly 4% profit within minutes. It sounds simple, but in practice, it requires quick reactions and continuous monitoring of the market.
This mechanism is essentially the market's self-regulation method. At the riskiest moments, counterparty risk is highest, but so are the opportunities. Most traders, when afraid, are actually creating windows for liquidity providers to profit.
If you want to participate in this kind of strategy, the key is to deeply understand the liquidation logic and parameter settings of these lending protocols. It’s not as simple as low buy, high sell; it requires genuine knowledge of on-chain data, risk models, and market microstructure. This isn’t an opportunity for everyone, but for those willing to learn and monitor continuously, there is indeed a stable arbitrage space.