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DAI Price Increase Caused $103 Million Compound Liquidations

Liang Che

Summary: According to Bitpush, the price increase in DAI caused massive liquidations at DeFi protocol Compound. The protocol liquidated $103 million worth of collateral. This also caused $8 million worth of liquidations at dYdX. The liquidations occurred because DAI's price momentarily increased by 30% on Coinbase (source of Compound's price oracle), which led to under-collateralized loans ...

According to Bitpush, the price increase in DAI caused massive liquidations at DeFi protocol Compound. The protocol liquidated $103 million worth of collateral. This also caused $8 million worth of liquidations at dYdX.

The liquidations occurred because DAI's price momentarily increased by 30% on Coinbase (source of Compound's price oracle), which led to under-collateralized loans on the protocol. The increased DAI price also increased the value of DAI borrowed on Compound, as compared to the collateral provided.

By Liang Che

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