Recently, a major liquidity protocol suddenly faced security concerns. Someone on Twitter leaked a fatal vulnerability and even demanded a large ransom. Once the news broke, various FUD flooded in, causing many users to panic and hurriedly repay debts or withdraw funds.

But upon reflection, this pattern is all too familiar——every security incident triggers a wave of panic selling. The question is: how do we find a balance between "rational assessment" and "blind panic"?

**First, look at the protocol's defense level**

This protocol has set a $1 million bounty on top security bug bounty platforms in the industry, attracting white-hat hackers worldwide to help find bugs. The core contracts have also been audited by top firms like PeckShield and Veridise. After the Ankr incident, the protocol rebuilt its risk control model, adding stricter debt limits and multi-oracle verification.

These are visible defenses, not just hype.

**My response logic**

Step 1: Don’t believe Twitter rumors. Check official channels and bounty program announcements for any formal confirmation of a vulnerability.

Step 2: Quickly assess your position’s health. Ensure your debt ratio won’t be liquidated during panic sell-offs—that’s the real risk.

Step 3: As long as the protocol is operating normally and no official confirmation of a vulnerability has been made, I won’t let emotions drive me to sell at a low price.

**In the end, one sentence**

Trust doesn’t come from zero risk—which simply doesn’t exist in DeFi—but from your rational judgment of the protocol’s defense system. Panic and ignoring risks are both enemies of trading.