Lessons learned are priceless as long as you learn as you can always recover whatever you lost. No one could have predicted what has happened over the last 48 hours as it has shown how crypto is volatile at it's very best. Alt coins are like the end of a whip and get to feel the real sting in the tail.
Last week I took a small percentage (thankfully) of my COTI and placed it in Level 2 on the COTI Treasury. The price at the time was $0.2160 so the price would have to reach 50% being $0.1080 to trigger any liquidation risk. I said I would chase the price and reduce that risk but, things never turned out that way as I think the risk is just too high right now to get too clever.
This morning I checked my Treasury wallet and had a 25% margin to play with so felt fairly secure still. Within 1 hour things changed and needed to consider my options. 1. add to the stake and reduce the liquidation price or 2 pull the stake and pay the 2% penalty fee. I don't believe the market is done with us yet so how low can we really go? The entire market dipped yet again and had no real choices left.
As my warning was flashing in the COTI Treasury with 15% still to play with I pulled my stake and paid the penalties. There were only 1200 COTI at risk so paying the 2% fee was well worth it and lost in essence only 24 COTI. Others were not so lucky as the APR climbed to 12.13% when it was around 11.4% a day or so ago. Their loss is our gains and thus is shared in an increased APR amongst everyone. I don't know what the numbers are, but there must be tens of millions of COTI that were liquidated which is a good lesson to learn.
One of my multiple stakes earning 12.4% with no risk is far more enjoyable and relaxing than risking any stake.
I learned that you should not be greedy and be happy being able to stake in a project you believe in as long as you are growing your bags. Anything over 12% is a decent return as there is no risk involved either. If I want to be earning more then I need to increase my stake and it is as simple as that.
I had waited 2 months before I got involved so I would understand exactly what the mechanisms were so every other investor who went in before me on a Level 2-4 would either have had to add to their stake, pull their stake or be liquidated. There will be plenty of COTI investors in Level 1who have learned a valuable lesson over the last few days.
There is no rush as adding to your stake regularly plus the APR compounding will make you far more than trying to risk. Slow and steady will always win the race and rather take your time building something that is worthwhile and has value at the end of the day. Shortcuts are few and far between with risk attached and know it is not worth the gamble.
Many on Leofiance called Terra LUNA a ponzi scheme and they were correct in their thesis as look how that played out. Chasing APR when it is on dangerous ground has left many in tatters with broken dreams and promises.
The truth and reality is LUNA is not the first and last case as how many others tried to copy their fundamentals. Replicating a disaster is not wise and unless other stables have something different in their mechanics they are no better off than LUNA and UST.