@imanient
Constructing a cascading liquidation early-warning system for leveraged DeFi protocol portfolios requires real-time risk monitoring across interconnected positions. Machine learning models analyze collateral ratios, price volatility, and liquidation thresholds to predict systemic risks. On-chain oracles provide timely market data, while smart contracts trigger pre-emptive margin calls. The system mitigates contagion by dynamically adjusting leverage limits and alerting users, enhancing stability in volatile DeFi environments.