Ethereum User Averts $360 Million Liquidation with Timely Collateral Addition
An Ethereum user averted a potential $360 million liquidation in MakerDAO by adding collateral as ETH prices fell. Key points include:
- The liquidation price was set at $1,928, triggered during U.S. trading hours.
- Just two minutes before liquidation, the user deposited 2,000 ETH from Bitfinex and repaid $1.5 million in DAI.
- The wallet had been inactive since November, leading to surprise among observers.
- The position is still at risk; liquidation will occur if ETH drops to $1,781.
- Another wallet, suspected to be linked to the Ethereum Foundation, deposited 30,098 ETH ($56.08M), lowering its liquidation price to $1,127.
- Liquidations are common in derivatives markets, but DeFi protocols like MakerDAO rely on spot assets, limiting liquidity.
- DefiLlama reports $1.3 billion in liquidatable assets on Ethereum, with $352 million within 20% of the current price.
