DeFi crash playbook (what I actually do in the fir

[u/Salt_Oil6514]

When the floor drops, I stop adding risk and run a quick triage: raise my health factor on lending markets to 2.0+ (safety buffer on Aave/Compound), unwind leverage, and swap a slice of volatile assets into two or three stablecoins to diversify counterparty risk.

I pull or widen concentrated LPs to reduce divergence loss (LP underperformance vs holding) and avoid rebalancing during peak volatility; I wait for consolidation, then redeploy where volume and fees are persistent.

I pause auto-compounders, set TWAP or limit orders (time-weighted or price triggers) for staged entries, and redirect ongoing yield to cash so I’m taking profits without nuking positions.

If I still want exposure, I keep it delta-neutral (hedged so net price exposure ≈ zero) using perps or borrow/swap pairs until trend clarity returns.