PRESS RELEASE. Based on the Anti-liquidation protocol, Shaktiio develops a liquidation protection programme for CeFi lending platforms. The anti-liquidation protocol aids the stability of the bitcoin market by preventing it from being overextended. The expansion of the loan market and the extensive usage of trading instruments, including the use of leverage, has resulted in the imposition of massive amounts of collateral on banks and other financial institutions. In the event of a dramatic market decline, mass liquidations will rise and harm the market unless a method is developed and implemented to avoid mass liquidations in the event of speculative activities, mass sales, and market hysteria.
Anti-Liquidation – a Necessity for the Cryptocurrency Market
The cryptocurrency sector blends cutting-edge technology with cutting-edge ingenuity. This is where the most recent breakthroughs and new technology innovations are accessible. Nevertheless, due to the exponential growth and novelty of technology, there is a significant amount of fraud and manipulation on the market. As a result of the extensive use of leverage for speculation, massive sums of assets have been frozen and are now being used as collateral for loan platforms. When there is a significant decrease in the market, there are large liquidations of blocked assets and, as a result, mass sales, which cause prices to continue to fall further. However, not only do speculators who use leverage incur massive liquidations, but so do borrowers who take out personal loans secured by cryptocurrencies to meet their financial obligations.
Forced liquidation escalates the market’s collapse and lowers the values of cryptocurrencies due to a massive sell-off. Forced liquidation will not occur, though, due to the Anti-liquidation protocol Shaktiio. This suggests that the market will stay constant and that there will be no sales. In the event of a collapse in the cryptocurrency
