# Lending & Borrowing

Lending protocols face unique risks around liquidations, oracle dependencies, and interest rate mechanics.

## Key Risks

* **Liquidation cascades** during market volatility
* **Bad debt accumulation** from underwater positions
* **Oracle manipulation** to borrow against inflated collateral
* **Interest rate attacks** exploiting utilization curves

## Guards We Deploy

**Liquidation Monitoring** — Track liquidation events, detect cascades, alert on unusual liquidation patterns.

**Oracle Health** — Monitor price feed deviations, detect stale prices, flag manipulation attempts.

**Bad Debt Detection** — Identify positions with negative equity before they become protocol losses.

**Utilization Alerts** — Track pool utilization and interest rate spikes.

## Case Study: Euler Labs

> "Guardrail excels in price monitoring and price deviation by far compared to any of the tools in the market." — Erik Arfvidson, Head of Cybersecurity

Euler consolidated from 3 monitoring tools to 1, with automated guard updates for new vault deployments.

[Read full case study →](https://www.guardrail.ai/case-studies/euler-labs)

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