How to manage the risks of lending positions on the whale chain?

Managing the risk of lending positions on the whale chain requires reasonable control of leverage, monitoring the value of collateral, paying attention to market trends, conducting risk hedging, formulating stop loss strategies, ensuring liquidity and diversifying assets.

Apr 09, 2025 at 10:50 pm

To manage the risks of lending positions on the whale chain, we need to start from the following aspects:

1. Reasonable control of positions and leverage:

Determine the appropriate lending scale and leverage multiple based on your own risk tolerance to avoid excessive leverage. For example, if whales do not have a particularly strong grasp of the market trend, they should control the leverage multiple to a low level, such as 2 times or 3 times, rather than blindly pursuing the high returns brought by high leverage to prevent huge losses caused by small market fluctuations.

2. Closely monitor collateral value and position health:

Use on-chain data analysis tools, such as Aave or DeBank, to view collateral rate changes in real time. Taking Aave as an example, its liquidation line is usually a certain percentage of the mortgage rate, and the positions are adjusted in time to avoid being liquidated.

3. Focus on market trends and macro trends:

Through professional cryptocurrency news media, market analysis platforms and other channels, timely understand the impact of industry trends, changes in policies and regulations, and the macroeconomic situation on the cryptocurrency market. For example, when the market shows an overall downward trend, whales should prepare for risk in advance, reduce positions appropriately or adjust their position structure; if a certain cryptocurrency is expected to rise due to upcoming technological upgrades or major positive news, the lending positions of that currency can be increased within a reasonable range.

4.Processing risk hedging:

Use derivative instruments or correlations between different assets to hedge. For example, whales expect the ETH/BTC exchange rate to fall. While lending ETH through lending platforms and shorting, they can buy ETH/BTC trading pairs on decentralized exchanges (such as Uniswap), or use Bitget's ETH/BTC perpetual contract to hedge to reduce the risks caused by reverse exchange rate fluctuations. In addition, some assets that are negatively or lowly related to mainstream cryptocurrencies, such as stablecoins, can also be appropriately allocated to appropriately buffer when market fluctuations.

5. Develop emergency and stop loss strategies:

Set the stop loss and stop profit positions in advance. When the position reaches the stop loss conditions, resolutely execute the stop loss operation to avoid further expansion of losses. For example, a whale can set the closing stop loss when the ETH/BTC exchange rate rises more than a certain range, such as 5%. At the same time, we must also formulate emergency plans to deal with extreme situations. If a black swan event in the market causes a large price fluctuation, how to quickly adjust positions or take other measures to protect asset safety.

6. Ensure adequate liquidity:

Keep a certain percentage of high-liquid assets, such as stablecoins or mainstream cryptocurrencies, so that collateral can be replenished or loan repayments can be repaid if needed, so as to avoid liquidation of positions due to insufficient liquidity. In addition, when conducting lending operations, the liquidity situation of the market should be fully considered to avoid excessive market price slippage due to large-scale lending or selling, which will affect actual returns.

7. Deploy lending platforms and assets:

Do not concentrate all lending positions on one platform or one asset, but spread them into multiple reputable and secure lending platforms, and choose different cryptocurrencies as collateral and lending objects. This can reduce the risks caused by technical failures, security breaches, or large fluctuations in the price of a specific asset. For example, in addition to lending on the Aave platform, you can also choose other platforms such as Compound and Curve.