It handled the black swan event of complete market crash at the beginning of the pandemic pretty easily. And the other thing is Bitcoin's market cap is well over 1T$ now, as expected the volatility goes down as the market cap goes up. I suspect those ratios are going to come down significantly within couple of years.

I read a bit online after this, and saw various recommendations for people with CDPs to keep more like 300% collateral.

If it dips below 150% the contract is automatically liquidated. Should give ample time for the creditor to get their money back.