If you want to leverage and earn yields in LSDFi, the key is effective risk control. A certain LSD liquidity derivative protocol's CDP model is quite sophisticated—using three mechanisms to protect users.

**First Layer: Over-collateralization Hard Threshold**
Opening a position requires putting up real assets. BNB assets must be collateralized at 160% to borrow, while stablecoins require 110%, so even if prices plunge, liquidation isn't immediate. When the collateralization ratio drops to around 140%, the system automatically triggers liquidation, auctioning off your collateral, with 10% of the penalty fee flowing into the stability pool. What's the benefit of this design? Liquidators are incentivized to participate, and the stablecoin itself has a buffer cushion.

**Second Layer: Dynamic Interest Rate + Multi-source Price Feeds**
The protocol integrates Chainlink and custom relay oracles, monitoring asset price fluctuations 24/7, reacting immediately to anomalies. Borrowing fees are set as a floating rate (annualized 2-12%), automatically adjusting during market overheating or cooling, effectively curbing excessive leverage. This dynamic adjustment mechanism is very refined.

**Third Layer: Insurance Fund Backstop**
Profits from liquidation events accumulate into the insurance fund, along with dedicated reserves, to guard against extreme events—such as flash loan attacks or oracle failures. Users can also choose to add insurance for extra protection, paying a bit more for more solid coverage.

Historical data shows this scheme is quite solid: over 95% of liquidation cases are handled smoothly, with no systemic de-pegging incidents.

So, in practice? Collateralize slisBNB to borrow stablecoins, achieving an annualized yield of over 15%, which is much better than keeping money in a bank. Meanwhile, the probability of black swan events is reduced to about one in ten thousand—this cost-performance ratio is quite attractive for yield seekers.