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

  • Bitcoin Weekly Analysis: Volume-Price Divergence and High-Level Consolidation Anticipat... 14 hours ago
  • Will Introduction of the Stablecoin Act Trigger a Financial Tsunami? 2 days ago
  • Trump Just Opened the Floodgates: What Happens When $9 Trillion in Retirement Money Hit... 5 days ago
  • US Crypto Stash Shock: Marshals' Low BTC Count Fuels 'Secret Sale' Debate, Ignites Buyb... 6 days ago
  • Mini Altcoin Season Brewing? Old Guard's Rally Signals Potential Shift 8 days ago

    • You need to login to comment.