**How DeFi Lending Positions Survive Each Market Cycle**

The crypto market can change faces in an instant. When using leverage on a lending platform, you need to adjust your strategy accordingly. The same approach that works in a bull market can lead to big losses in a bear market. The key is to sense the market temperature and adapt your stance flexibly.

**Bull Market Comes, People Go Crazy**

At this time, borrowing demand skyrockets, and interest rates rise. You might try to be more daring and improve your capital efficiency. But remember one thing: the more you make money, the less you see the risks. Don’t just keep your collateralization ratio fixed when prices are rising daily; a significant dip could force a liquidation and wipe you out.

One advantage of a bull market is that airdrops and giveaways are everywhere. Don’t sleep on these opportunities—assets that need upgrading should be upgraded, and these freebie chances are waiting for you.

**Bear Market Is the True Test**

Prices decline steadily, and the market feels dead. At this point, don’t think about making money; your primary task is to survive. Immediately review all your positions on the lending platform and significantly increase your collateralization ratio. If you still feel uneasy, instead of waiting to be liquidated, proactively repay some debts to reduce your risk exposure.

Interest rates are indeed cheap in a bear market, but arbitrage opportunities are also scarce. You need to learn when to hold back, focusing on the most core and stable positive interest spread opportunities, rather than chasing after trivial gains.

**The Most Interesting Volatile Market**

Prices jump up and down unpredictably, making it hard to see a clear trend. But this disorderly movement is precisely an opportunity. You can set a price band, slowly add collateral during dips with idle funds, and repay some debts during peaks. By repeatedly fine-tuning in this way, you can gradually improve your position quality without increasing risk.

**Collateralization Ratio Is Your Lifeline**

True experts are not always attacking. They know when to hit the brakes and when to ease off the accelerator. In the lending market, the collateralization ratio acts as this brake and accelerator. Adjust this indicator according to market conditions, and you can find a comfortable rhythm regardless of the market cycle.

Markets are always cyclical, and your strategy should flow with them. Don’t get trapped by fixed thinking.