Ethereums ETH has spiraled on Monday and brought a large decentralized financing loan (Defi) on the lending platform Sky (former maker) to be liquidated.
The borrower at risk took a loan of $ 74 million in DAI StableCOin by pledging 65,680 ETH as security, worth almost $ 130 million earlier today, per day. Sky Vault Data Dashboard.
In an already weak crypto prize, ETH dropped almost 10% during the day to $ 1,820, below the loan’s liquidation level just over $ 1,900.
Blockchain data from Debank shows that the borrower drew 2,000 ETH worth nearly $ 4 million at current prices, from Crypto Exchange Bitfinex earlier Monday and deposited the assets to Maker Vault and supported the loan’s security to avoid liquidation.
After the deposit, the liquidation level of the loan at around $ 1,875 amounted to ETH, which was still higher than the latest price of ETH.
Read more: Ether came dangerously close to massive liquidation. Here are some levels to see
It’s not the only defi loan at risk of rapidly falling ETH prices. There are approx. $ 13.6 million worth of loans to a liquidation level $ 1,857 ETH, and an additional $ 117 million loan loan is liquidated to $ 1,780, Defillama shows. There are approx. $ 366 million debt to liquidate if ETH falls an additional 20%per year. Defillama -Data.
Liquidations in DEFI can have a significant impact on a security asset price as the protocol sells or actions from security in a liquidated loan, which aggravates the sales pressure.
