While traditional Decentralized Finance platforms are still manually adjusting liquidation parameters, FLM has already entered a new era of fully automated liquidation. Recently, a slight fluctuation in interest rates during the late night triggered an astonishing on-chain liquidation storm.

Hundreds of autonomous liquidation bots were triggered by an interest rate change of just 0.35%, quickly handling three large positions. This code-driven liquidation operation processed approximately 20 million dollars worth of assets in a short period, showcasing the astonishing efficiency of algorithmic liquidation.

This event reveals the three major transformations currently taking place in the Decentralized Finance (DeFi) sector:

1. Algorithm Efficiency: The open-source clearing algorithm developed by the community significantly improves processing efficiency, far exceeding traditional protocols.
2. Regulatory Adaptation: The latest regulatory provisions inadvertently provide a legal basis for algorithmic clearing.
3. Surge in Collateral: The amount of collateral locked on the chain has increased significantly, with a week-on-week growth of 47%, reaching an all-time high.

With the Federal Reserve's interest rate decision about to be announced, market tension is rising. If market volatility exceeds the preset threshold, FLM's automatic liquidation system may trigger a larger scale liquidation wave.

Industry insiders comment that FLM is not just an ordinary cryptocurrency project, but an algorithmic tool that can profoundly impact the traditional financial system. Mainstream market makers are urgently adjusting their FLM-related liquidity models to cope with potential market upheavals.

This series of events highlights the technological innovations taking place in the DeFi field and their potential profound impact on traditional financial markets. With the increase in automation, the operational efficiency and risk management capabilities of DeFi platforms are constantly improving, which could reshape the entire financial ecosystem.