“I don’t necessarily think it’s a sign of unethical behavior, but it does open up risks — exactly as you’ve seen occur — and the risks are not too hard to predict,” remarked Powell. “If you have a $100 million loan, and you have that on leverage, and it’s against your token, there’s a chance your token could drop in price and you’ll need to liquidate it to cover yourself.”
Source: https://www.coindesk.com/tech/2023/08/09/as-curve-averts-defi-death-spiral-fiasco-exposes-serious-risks/?utm_medium=referral&utm_source=rss&utm_campaign=headlines