When the market crashes, some panic while others smell opportunity.

Many professional traders are studying one thing — how to achieve quick arbitrage through the liquidation mechanism of lending protocols. The mechanism is actually simple: when the price of collateral drops sharply and triggers a liquidation threshold, anyone can act as a liquidator to help the borrower repay the debt and take the collateral at a 4% discount. This 4% difference may seem small but is a real risk-free profit.

How exactly does it work? Suppose BNB drops significantly in a short period. If you're quick, you can snatch a batch of BNB from the liquidation mechanism at a 4% discount, then immediately sell it at market price on the open market. A few seconds’ difference can yield a 4% profit.

As long as the market remains volatile and people continue to use high leverage to open positions, such liquidation opportunities will keep appearing. But what are the prerequisites? You need technical skills, courage, and—most importantly—a sufficient reserve of stablecoins as "ammunition" ready at all times.

This transparent liquidation mechanism ensures the system's risk remains controllable, while also providing a stage for professional players to participate. You can choose to conservatively provide liquidity to earn basic returns, or actively engage in liquidation arbitrage for higher gains. The ecosystem's gameplay is far richer than it appears on the surface.