In DeFi, safety always comes first when it comes to managing finances. Taking a major mainstream stablecoin protocol as an example, it has achieved a peak TVL of over $4.3 billion on BNB Chain, ranking second, and has also realized an annual income growth of 131.6%. The behind-the-scenes support is actually a comprehensive security system that is rigorous from top to bottom.

How is it so rigorous? The approach of this protocol is worth examining—

First, audits. The core contracts have undergone comprehensive audits by five top security agencies: Peckshield, Veridise, Slowmist, Blocksec, and Supremacy. All known vulnerabilities have been fixed, audit reports are publicly available, and the code is open source with no hidden backdoors. The purpose of this is to give users peace of mind.

Next, risk control. The protocol monitors market fluctuations in real-time and dynamically adjusts collateral ratios based on market conditions. During a bull market, the collateral ratio for BTCB is maintained at 150%. When market volatility is severe or a bear market begins, it automatically increases to 180%, providing users with ample safety buffers. It also has multiple liquidation warning systems—when the collateral ratio approaches the warning level, alerts are sent via email, SMS, and wallet notifications, giving users time to adjust their positions and avoiding sudden losses.

Most importantly, the liquidation mechanism. Many DeFi protocols implement a "one-size-fits-all" liquidation, where all positions are forcibly liquidated once triggered. This protocol improves on that by adopting a gradient liquidation approach—when the collateral ratio drops below 150%, only part of the assets are liquidated to restore the collateral ratio, without affecting the entire position. This minimizes user losses. Holders of veLISTA can also enjoy additional benefits.

With zero bad debt records, it shows that this system is truly operational. For those looking to perform stable arbitrage in DeFi, this kind of security framework can definitely help you sleep better at night.