DEFI Risk: High Utilization Rates Trigger Forced Liquidations on Lista DAO

A recent surge in DeFi platform activity is resulting in high utilization rates, potentially leading to forced liquidations. According to data from Lookonchain, on November 6th, MEV Capital and Re7 Labs’ funds managed by Lista DAO reached a staggering 99% utilization rate. This triggered forced liquidations for users holding funds within the platform. As other platforms reach high utilization rates exceeding 90%, experts recommend increased caution in DeFi, highlighting the potential risks involved when protocols become heavily loaded.