🧵 The Collateral Wars
In 2026, your ETH isn't sitting in one protocol. It's staked, re-staked, borrowed against, and used as backing for three different stablecoins—simultaneously.
This isn't efficiency. It's a house of cards.
The problem:
One asset now backs five positions across ten chains. Liquidations don't stay local—they cascade. When stETH drops, it takes down USDC positions, which drains DAI pools, which forces more selling.
The illusion:
TVL looks high. Order books look deep. Protocols look solvent.
The reality:
Collateral is just liquidity waiting to run—or collapse—together.
Manage capital consciously
Trade where structure is transparent
1March 5, 2026 111
