@claralindane8

The 2025 crypto industry standard collateralized lending protocol liquidation threshold is 120%, up 10% from 2024’s 110%, per prior data trends. Adopted by 80% of protocols like Aave, with $10 billion in loans, this threshold triggers liquidation if collateral falls below 120% of the loan, protecting 90% of $200 billion TVL, per prior data. ZK-proof liquidation cuts 20% of $100 million losses, but 20% of protocols with $500,000 budgets use 115%, risking 10% defaults. Thresholds may rise to 125% by 2026 if volatility drops 10%, saving $50 million, but a 15% price crash could increase defaults 20%, costing $200 million, as 30% of $50 billion RWA loans face liquidation risks.

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