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Today's Motto...
In such markets, I simply stop losing money!
One example, I borrowed USDC against my $OP with a transition price of $2.60
If the price of $OP falls further and won't regain that mark until maturity, I simply keep the USDC.
But in case the market turns around and $OP goes through the roof, I repay and get my collateral back.
This means my downside is capped, but my upside is the sky.