Prices sleep at 4 PM.
NYSE is closed about 81% of the week. A lending protocol built for 24/7 crypto treats those hours like any others — and that's where borrowers and lenders get hurt.
The quote stops, the world doesn't
After the close, the official price freezes while news keeps arriving. A loan looks healthy at a price that no longer exists.
Liquidated at 3 AM on a thin book
Liquidating on after-hours DEX quotes means selling collateral into almost no liquidity, at prices one trade can move.
Monday opens somewhere else
The opening print can land several percent away from Friday's close. Loans priced for normal volatility can go underwater in a single print.
Three rules for the night.
The oracle sleeps with the exchange
Collateral is valued on regular-session prints only. While NYSE is closed nothing is liquidated; the first check is the opening print.
liquidate only if oracle.live && HF < 1Limits priced for the next gap
Your borrow limit is what survives the closure ahead at 3σ. It's lower before a weekend and rises as Monday's open gets closer.
maxLTV = LT · e^(−3 · 1.3 · σ_gap(H))Night premium funds the Gap Reserve
Borrowers pay an extra rate only while the exchange is closed. It flows into the reserve that covers bad debt when a gap jumps past a liquidation.
rate = base(U) + night · 1[closed]NVDA · last 6 days
Green and red bars mark opening gaps: the jump from the last close to the next opening print.
Borrow limit by closure ahead
| Asset | Overnight | Weekend | Now | Liq. at |
|---|
Same rule, different exposure: a loan opened on Friday afternoon has to survive 65.5 hours without a price; one opened on Sunday night only a few.
Pool figures are not live yet.