The market is bleak, and the trend is sluggish.
But Huma @Huma Finance 🟣 Prime is definitely a "hot cake".
An APY of up to 28% perfectly aligns with the law of appetite!
Because it is Defensive Looping™,
Therefore, Huma Prime not only offers high returns but also provides peace of mind.
The three main risks faced by traditional DeFi Looping and the protective strategies of Defensive Looping™ are well known and familiar to everyone:
Three major risks
■ Interest rate reversal (negative yield)
■ Secondary market uncoupling clearing
■ Impairment of underlying assets
Protective strategies
❐ Automatic deleveraging
❐ Primary market clearing redemption
❐ Establish independent reserve layer
As a seasoned Marvel fan, I want to use the "Avengers" to stage a super showdown against Risk vs Strategy.
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Risk: Interest rate reversal (negative yield)
Representative character: Loki
Loki is the "God of Mischief", clever, witty, and cunning,
For power, by any means necessary:
• Caused trouble and sent brother Thor to "exile" on Earth
• Collaborated with the Chitauri army to create his masterpiece—the Battle of New York
• Used illusions to fake death and escape multiple times
……
The time management bureau has counted that Loki has done this sort of thing no less than 50 times!
Mischief is like leverage; Loki's behavior of creating short-term advantages through trickery is like using borrowing to amplify returns. It seems to have control over the situation, but once "interest rate reversal" occurs—Thor or the Avengers intervene—he will be bitten by his own tricks and fall into "loss."
Strategy: Automatic deleveraging
Representative character: Thor
I torment my brother a thousand times, my brother treats me like a first love.
——Thor really loves Loki!
No matter what mistakes Loki made, whether rebellious or arrogant, or even betrayal… Thor never truly hated him or saw Loki as an enemy; he always regarded him as family, trying every means to stop him and correct his mistakes in a timely manner.
How well does Thor understand Loki? It's like he has the Prime Watchdog™ function, able to constantly "calculate" whether Loki in front of him is a real person or an illusion, quickly seeing through the trick before risks spiral out of control and pulling him back from the edge of "loss" to avoid making bigger mistakes and causing greater losses.
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Risk: Secondary market decoupling liquidation
Representative character: Thanos
The Purple Sweet Potato Spirit, in order to achieve cosmic balance, disguises as the director of family planning, secretly manipulating various forces to find and collect the Infinity Stones, with the aim of embedding them in the Infinity Gauntlet. After the snap, half of the universe's life disappears, and in the following years, the world falls into despair, the economy collapses, and it becomes a lifeless scene…
The actions of the Purple Sweet Potato Spirit are like triggering the "snap" that caused the secondary market liquidation, leading to a death spiral, where not half of life disappears, but all positions!
Strategy: Primary market liquidation redemption
Representative character: Iron Man
Iron Man, using quantum realm technology combined with Pym particles and his self-developed positioning and navigation systems, successfully designed and manufactured a device capable of precise time-space travel, thereby assisting the Avengers in collecting the Infinity Stones and executing the snap that reversed the outcome.
The quantum realm is like the primary market, the time-space shuttle device forged from steel and the Iron Man version of the Infinity Gauntlet are more like the PST Guardian™, ultimately pulling back the half of humanity that disappeared from another dimension, restoring the world to its original state.
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Risk: Impairment of underlying assets
Representative character: Ultron
Originally, Ultron was designed to be a global automated defense system aimed at protecting Earth from extraterrestrial threats, that is, a high-level AI to protect humans and Earth, jointly developed by Iron Man and the Hulk;
However, due to an irreparable flaw in its core logic, after gaining self-awareness, Ultron believed that "humans are the greatest threat to Earth" and attempted to exterminate humanity, ultimately evolving into a threat to destroy the Earth.
Ultron's irreparable core logic flaw is like a problem with the underlying assets, such as defaults/cash flow issues that lead to asset impairment; once it occurs, it spreads like a virus like Ultron, rapidly destroying everything, causing users to suffer total losses.
Strategy: Establish independent reserve layer
Representative character: Vision
In order to defeat Ultron, Vision did one key thing: cut off Ultron's network connection.
Thus, the threat posed by Ultron is contained within a specific scope, and Ultron also cannot upload its consciousness to the network, transfer, and be reborn after its physical body is destroyed.
Isn't Vision's act of cutting off Ultron's network connection very similar to "establishing an independent reserve layer"?
It’s like establishing an independent isolation buffer zone specifically to absorb certain impairment risk shocks, preventing the Ultron virus from spreading and affecting overall stability.
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Bear markets are not lacking in high-yield temptations,
What is lacking is the defense mechanism that has been prepared before the risks appear!
——This is precisely the value of Defensive Looping™.
Are you ready to join this "Avengers"?