Increased Dai price allowed Compound (COMP) liquidator to earn $4 million

Increased Dai price allowed Compound (COMP) liquidator to earn $4 million
фото показано с : invezz.com

2020-11-28 16:03

The last week or so brought a major price increase for the cryptocurrency market, even allowing Bitcoin to hit $19.1k for a brief moment. However, Thursday, November 26th, started a strong correction that caused many coins to lose as much as 10% of their value, which also had significant consequences on the stablecoin markets.

Exchanges using Compound oracles saw DAI price grow

As the crypto market started seeing price drops on Thursday morning UTC, traders, as always, rushed to exit. Most of them just wanted to exchange their coins for stablecoins, and wait for the price crash to end, so that they can buy Bitcoin again.

However, this new crash had an unexpected effect on stablecoin Dai (DAI), which briefly saw its price surge from $1 to $1.3.

Not only that, but this happened only on two exchanges — Uniswap and Coinbase. The stablecoin managed to remain stable on many other major platforms, such as Bitfinex or Kraken.

Many started wondering why did DAI behave like this on Coinbase and Uniswap, but not on other platforms, which led to the realization that both of these exchanges are used by Compound’s Open Price Feed oracle.

Coinbase acts as the oracle’s baseline, while Uniswap behaves as an anchor and sanity check. However, at the time when everyone started rushing out from the market, Uniswap failed in its function, and it started posting a higher price than normal.

A liquidator earns $4 million from the DAI price surge

One thing to note is that Compound’s liquidation this morning hit $89 million, with $52 million coming from DAI. One particular liquidation stood apart, as it contained 46 million DAI repaid.

Sam Priestley, a known DeFi researcher, noted that the liquidation was done on a COMP farmer who used DAI and USDC collateral for powering recursive borrowing in these same currencies. As a result, the account ended up below the liquidation threshold due to the DAI price increase.

Someone got liquidated for $49m on compound today. Liquidator got $3.7m just for calling a method.https://t.co/A8gw7uhQau

— Sam Priestley (@arbingsam) November 26, 2020

As a result, the liquidator seized $50 million in cDAI, while returning only $46 million. Basically, the liquidator earned $4 million. The liquidator issued four other transactions, which removed an extra $6 million in debt.

The post Increased Dai price allowed Compound (COMP) liquidator to earn $4 million appeared first on Invezz.

origin »

Bitcoin price in Telegram @btc_price_every_hour

ETH/LINK Price Action Candlestick Set (LINKETHPA) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: -2.75 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 467.1 (-100%)

price many lose november coins started 26th

Источник: invezz.com

price many → Результатов: 126


Фото:

Here’s the “Do or Die” Price That Will Determine Ethereum’s Macro Trend

Ethereum has remained stuck beneath its crucial near-term resistance level at $230 The crypto has been ranging sideways alongside Bitcoin and many of its peers, but it has been unable to remain within its long-held trading range The break below this range appears to be a grim sign for the crypto Where it trends next could largely depend on how it reacts to a crucial level that it is trading 10% above Holding above this […]

2020-7-4 23:00


Фото:

Three Simple Reasons Why Ethereum Won’t Benefit from DeFi’s Growth

DeFi-related tokens have been caught within an intense bull market over the past several weeks, with many posting 100%+ gains This growth has been fueled by return-hungry investors looking to take advantage of “yield farming” This trend isn’t fading as fast as some analysts expected and could continue strong in the months ahead Although built upon Ethereum, the DeFi sectors growth hasn’t boosted ETH’s price One prominent investor doesn’t believe it will ever become the […]

2020-7-3 23:00


Фото:

Analyst: If Ethereum Fails to Rally Now, It May Never Be Able To

Ethereum’s price has seen a notable rebound from its recent lows, but it still remains caught within its wide multi-week trading range Its present lack of strong momentum has been surprising to many investors, as it has been garnering massive utility in recent times This has led one prominent data analyst to explain that it’s becoming “do or die” time for ETH He notes that a failure for it to post a swift rally in […]

2020-6-24 23:00


Фото:

This Bitcoin Indicator Forecasted the 2017 Bull Run. It Just Flashed Again

Bitcoin’s lackluster price action over the past few weeks has struck a serious blow to investor sentiment, leading many to anticipate weakness in the days and weeks ahead. That being said, this growing bearishness may be unwarranted, as some interesting trends seen while looking towards its on-chain fundamentals seem to suggest that further upside is […]

2020-6-20 00:00


Фото:

Here’s the Critical Price Level That May Kick Off Ethereum’s Next Bear Trend

Ethereum investors have gained little insight into the cryptocurrency’s trend over the past few weeks Despite being stuck within a wide trading range, it is important to note that ETH has been hovering just above the lower boundary of this range over the past few days This has marked an underperformance of Bitcoin and many of its other peers, but an overnight dip below this level was quickly absorbed by buyers Analysts are still forecasting […]

2020-6-20 23:00


Фото:

Ethereum Forms Ascending Channel, But Bears Aren’t Out of the Woods Yet

Ethereum, like Bitcoin, has been able to recapture its previous trading range and put some serious distance between its current price and its recent lows The crypto market has been able to see a swift recovery from the overt weakness seen yesterday This, to many bulls, seemed to confirm that the market is well poised to see further upside in the days and weeks ahead In the case of Ethereum, the crypto now appears to […]

2020-6-17 23:00


Bitcoin Passed its First Stress Test & Turned Out More Resilient than Other Asset Classes: JPMorgan Report

Bitcoin took its first test and has got “mostly positive” results, according to JPMorgan Chase & Co. This test was the sell-off in March when the price of bitcoin crashed more than 40% just like many other markets — stock market, bonds, and gold — as economies shut down and investors fled riskier assets in […]

2020-6-14 20:14


Фото:

Holding Above This Key Level Could Send Bitcoin to $14,000; Will This Happen?

Bitcoin’s consolidation phase has muddied the clarity that many investors had regarding the strength of its uptrend Because the resistance that has been laced just above BTC’s current price has proven to be insurmountable, it remains unclear as to what could push the crypto past this level Analysts still believe that the crypto’s outlook could be extremely bright In order for it to validate its potential strength, however, it is imperative that buyers push it […]

2020-6-12 02:00


Фото:

Analysts Expect Bitcoin to See “At Least 18 Weeks” of Blood Due to This Pattern

Bitcoin saw some immense overnight turbulence that caused its price to plummet from highs of nearly $9,900 to lows of $9,400 on many exchanges This movement liquidated over-leveraged long and short-positions, and further confirmed that BTC is caught within a tight trading range Despite its current stability, one pattern now indicates that Bitcoin is positioned to make a massive movement in the near-term One analyst believes that this movement will favor sellers, as a pattern […]

2020-6-10 21:00


Фото:

Cryptocurrency News Roundup for June 2, 2020

The Bitcoin community is certainly no stranger to sudden price drops that are very rapid, deep, and volatile. However, the plunge that brought the alpha cryptocurrency down by some $800 in as little as five minutes yesterday came as a rude shock to many traders who were virtually left stranded on the wrong side of […] The post Cryptocurrency News Roundup for June 2, 2020 appeared first on BeInCrypto.

2020-6-3 13:48


дальше еще 77 новостей →

Партнеры Currencies.ru



Реклама на Currencies.ru

Самое свежее на Currencies.ru

Crypto fear just hit 13. Every time before, it marked a bottom

The Crypto Fear and Greed Index, the most widely watched gauge of market sentiment, has collapsed to 13. That reading sits deep in “extreme fear” territory, the zone where panic, capitulation, and despair dominate the market’s mood. Bitcoin is hovering…