X @Zhu Su

Market Dynamics & Risk Assessment - A single large sell order of 100,000 units triggered a liquidation cascade on @quanto, causing IMF's value to plummet from $30 million to $5 million within an hour [1] - The rapid price decline prevented the protocol from liquidating IMF tokens at their loan values, resulting in USDS lenders losing approximately $600,000 [1] - This loss represented a 1% haircut to USDS lenders, as total USDS deposits on the platform amounted to around $60 million [1] - A similar cascade on coins with loans of $10+ million could have had more significant consequences, but is less likely due to higher liquidity [1] - Lending USDS on IMF exposes lenders to the aggregate risk of all borrowable coins on the platform, rather than the isolated risk of a single coin [1] - While this approach mitigates the risk of total loss from a single pool, it introduces contagion risk across the platform [1] IMF Recovery & Trading - IMF has shown strong recovery, increasing 4x from its lowest point after the cascade [1] - IMF is listed on @quanto with 10x leverage for trading [1] - Users can deposit IMF and use it to trade IMF [1]