Express

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

Last Update:

Tags: ,,
Link: DAI Price Increase Caused $103 Million Compound Liquidations   [Copy]
Next:

Related Articles

  • BTC Weekly Outlook: The Oversold Bounce—A Bottom or a Shorting Opportunity? 4 hours ago
  • The Making of a Political Darling: Is Chainlink’s Government Deal a Victory for Tech or... 4 days ago
  • Google Steps Into Blockchain: A New Front in the “Ledger Wars” 6 days ago
  • Bitcoin Weekly Analysis: Is a Bear Market on the Horizon? 8 days ago
  • AI Fraud Is Breaking the Internet’s Trust Economy. Can Compliance Tech Keep Up? 11 days ago

    • You need to login to comment.