In DeFi risk is always present everywhere, even on correlated pools w/ fundamental oracles: In March, two months after the USD0++ de-peg, a user has a $4.6 million USD0++ loop liquidated, losing $225k as the penalty. This liquidation was likely caused by interest accrual, weirdly the EOA was active before and after the event so it is unclear what exactly happened. Maybe they forgot to top up collateral? Maybe they ran out of funds on-chain? The point is in DeFi un-expected things will happen. In a different world, a user error like this could have triggered contagion risk leading to liquidation cascades or bad debt.

0x3516f0cd66a51a60696a0b5cbb4ea87620fc09203458f629f24dfe0b51a6206a