Conzi

I genuinely thought it was almost impossible to get liquidated. I deposited 2,550 $STRIKE as collateral and borrowed 3,500 $ADA. My position started with a 343% Health Factor and an LTV of roughly 29%. In my mind, this was an extremely conservative position. I remember thinking, “I’m only borrowing a small percentage of my collateral. I can leave this loan open for months and not worry about it.” Reality had other plans. Within days, $STRIKE started losing value against ADA. The overall market didn’t have to crash. All it took was for my collateral to underperform the asset my debt was denominated in. My Health Factor dropped from 343% to 137%. I came within just a few cents of being liquidated. Here’s the part that really surprised me: I didn’t do anything reckless. I didn’t max out my borrowing power. I wasn’t using 70–80% LTV. I wasn’t trying to chase insane leverage. I simply underestimated how quickly one asset can lose value relative to another. That’s the lesson I want people to understand. A lot of people think DeFi borrowing is as simple as, “I’ll overcollateralize my loan, borrow a small amount, and I’m safe.” I thought the exact same thing. But if your debt is denominated in ADA, what matters isn’t how much your collateral is worth in dollars. What matters is how many ADA your collateral is worth. If ADA starts outperforming your collateral, your safety margin can disappear much faster than you expect. Thankfully, this ended as a lesson—not a liquidation. If you’re going to use DeFi lending, take the time to truly understand Health Factor, LTV, liquidation price, and collateral risk before opening a position. In DeFi, experience is one of the best teachers. Unfortunately, it’s also one of the most expensive.

Sometimes I wonder if I made the biggest financial mistake of my life. I bought $PLTR, $TSLA, and $NVDA when most people either didn’t understand them or thought they were terrible bets. Not because I was a genius, but because I became obsessed with understanding what they were building. I studied the numbers, the vision, and I trusted my conviction. Years later, the market proved me right. Then I discovered Cardano. And I did the exact same thing. I spent thousands of hours studying blockchain, cryptography, economics, governance, and the potential of a completely new financial infrastructure. I reached a conclusion that changed my life: I sold positions that today would be worth a fortune to bet on what I believed could be an even greater opportunity. There are days when I ask myself if I sold my future children’s financial future chasing an intuition. But then I remember something: if I had listened to the majority, I never would have bought $PLTR, $TSLA, or $NVDA when nobody wanted them. I don’t know if Cardano will turn out to be my greatest investment decision or my biggest mistake. What I do know is this: I’d rather live with the consequences of trusting my own research and convictions than spend the rest of my life wondering, “What if I had trusted myself one more time?”