While Kadena hasn't announced an official airdrop, potential eligibility would likely prioritize ecosystem builders and active users. Requirements might include: deploying smart contracts on Kadena's multi-chain platform, providing liquidity on Kadena DEXs like Kaddex, regularly using the Kadena wallet for transactions, and participating in network governance. Developers building tools or dApps would probably receive significant allocations. Given Kadena's focus on scalability, users who actively test its unique braided blockchain architecture and bridge assets to the network would demonstrate valuable engagement that could qualify for any future distribution.
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Does leverage multiplicatively increase liquidation risk? Yes, leverage increases liquidation risk multiplicatively, not additively. This is because leverage multiplies the impact of any adverse move on an operator's equity. For example, a 10% drop in the value of the collateral (ETH) would cause a 10% loss for an unleveraged restaker. For a 4x leveraged restaker, that same 10% drop wipes out 40% of their equity, pushing them much closer to the liquidation threshold. More critically, a slashing event that directly removes a percentage of the staked principal has the same multiplicative effect. A 5% slash destroys 5% of an unleveraged position but 20% of the equity in a 4x leveraged position. This non-linear relationship means small perturbations can easily trigger a liquidation when leverage is high.
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Does leverage multiplicatively increase liquidation risk? Yes, leverage increases liquidation risk in a more-than-linear, or multiplicative, fashion. This is because it compounds risks. A 2x leveraged position is not twice as likely to be liquidated; it is vulnerable to a smaller price move (a 33% drop instead of a 50% drop for a 3x position) and its existence can contribute to the conditions that cause that drop. In a crisis, the forced selling from a cluster of liquidations itself drives down the collateral price, triggering further liquidations in a positive feedback loop. Therefore, the relationship between leverage and systemic liquidation risk is exponential, not linear. Each incremental increase in leverage across the system disproportionately amplifies the potential for a catastrophic cascade.
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