The true face of high collateralization rates

High collateralization rates (LTV) offered by nDeFi protocols may seem attractive, but what is hidden behind them? Taking slisBNB as an example, some protocols set aggressive collateral policies that are not purely risk assessments—they are carefully designed incentive games.
Why do protocols do this? Simply put: by allowing users to borrow more funds, they mathematically reduce the cost of cycle loans, which can quickly boost TVL data. The system defaults to keeping slisBNB prices closely linked to BNB, so it dares to compress the safety margin in the risk control model. But the problem is, this parameter setting is like a string that gets tighter and tighter.
What does this mean for users?
High LTV indeed offers incredible capital efficiency, but at the cost of your reaction time being systematically shortened. Even a small market correction can instantly close the collateral replenishment window. In other words, the protocol profits from TVL growth, while users bear the risk of liquidation.
This is not investment advice, just a risk analysis share. Before participating in any DeFi strategy, calculate how much drawdown you can withstand.