Proposal to solve current issues

I think we should begin by uncapping borrow APR, so that as we get closer to using up all of the funds, the APR goes up exponentially, making it impossible for complete insolvency to occur. On top of this, we should lower the liquidation threshold to 80%, which is a more reasonable value, this would set the whale borrower even closer to liquidation, without instantly liquidating everyone on the platform. Perhaps in the future we could set some sort of reserve to avoid this happening again. Lastly, there needs to be safety code in place to prevent USDN destabilization from breaking the laws of the system. If anyone with 1000gvires thinks these ideas make sense, please reach out to me. Thanks.

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So it seems that current laws would have prevented such issues in many cases but it is some whale investments that have brought things outside their limits. If this is it, a possible preventing solution could have to do with investment size control.
Please also read this very good post: Set WAVES/USDN/EURN Liquidation Threshold to 1, Max Borrow APR for all assets to 400 - #118 by Sneed

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