Bell Curve Inside Crypto’s Liquidity Crunch | Romeo Ravagnan & Sonya Kim
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Nov 7, 2025 Join DeFi expert Romeo Ravagnan, co-founder of 3F Labs with extensive trading experience, and Sonya Kim, also a co-founder focusing on RWA lending. They dive into the fallout from a $30 billion open-interest wipeout, examining how vulnerable portfolios faced liquidations. The duo contrasts isolated and pooled risk models in lending, revealing the complexities of lending architectures. They also discuss the implications of tokenized real-world assets and outline innovative strategies for providing immediate leveraged exposure, making crypto mechanics more accessible.
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Open-Interest Wipeout Fueled By Liquidity Vacuum
- A $30B open-interest wipeout was driven by a liquidity vacuum and ADL spirals across exchanges.
- Exchanges using their own order books as oracles turned collateral valuations into a cascade when bids vanished.
Oracle Choice Turned Yielding Collateral Risky
- Binance used its own order books as oracles for staked assets, which collapsed when book liquidity disappeared.
- That made yielding collateral like Binance-staked ETH suddenly valueless and triggered liquidations.
Limit Size And Be Ready To Re-Hedge
- Allocate small, monitored sizes to illiquid, high-yield strategies and track ADL and re-hedging readiness.
- If ADL happens, quickly re-hedge by re-shorting or selling the long position to limit bleed.