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Curve records hundreds of DeFi “soft liquidation” cases lasting weeks
CoinDesk data shows 704 soft liquidation instances across 602 borrower addresses, with a median duration of 14.5 days and some lasting months.
Curve Finance’s lending system is seeing a pattern in which crypto borrowers remain inside a liquidation range for extended periods without being closed out, according to data covered by CoinDesk.
The outlet reports 704 soft liquidation cases across 602 borrower addresses, with a median duration of 14.5 days. In the same dataset, a quarter of cases lasted at least 38.9 days, and some positions sat in the range for months, with 476 of those cases beginning in the first half of 2026.
Unlike conventional DeFi lending where collateral is sold once it crosses a set price threshold, Curve’s LLAMMA approach gradually converts collateral while the asset stays within a defined price range. CoinDesk notes the process can reverse if prices recover before the loan fails completely.
Even during soft liquidation, borrowers can still face losses from fees, interest, rebalancing, and market swings, and positions can move to hard liquidation if prices continue to fall. CoinDesk also describes Curve as holding about $1.35 billion in deposits, citing DefiLlama.