Ducat just announced that they are launching on mainnet this week with somewhat dramatic promises

This is a risk by letting a computer program control your collateral.

There are two sides to this . Being able to tap into liquidity natively on btc L1 without messing around with risky Cross-chain is a good thing.

But the skeptics aren't wrong either.
Self custody doesn't really exist when you're borrowing. At the end of the day you're still trusting a multi-sig setup and oracle price feeds to not glitch on you.

People shouldn't ignore the liquidation risk.