Binance is a clear outlier, it has contained damage so brilliantly that we as an industry hardly even noticed ripple effects. It will be worse next time a more fragile product is hacked.
So if you are a high yield leveraged USD guy, how to decrease sensitivity to liquidity squeezes?
Diversify your trades!
- do delta-neutral basis trade - low correlation with defi rate spikes
- Allocate to high yield, non-leveraged RWA positions. They are not exposed to borrow rate spikes
- borrow at fixed rates (ah, right there are no fixed rate markets for USD assets)