Ether whale narrowly avoids liquidation of $117 million position
Ether holders continue to monitor two dicey ‘whale’ positions that came dangerously close to liquidation yesterday, with a combined $229 million worth of collateral at risk.
Following another rough weekend, which saw ETH slide around 10%, liquidating such large quantities would be sure to send the token even lower still.
After hitting a four-year low against bitcoin towards the back end of last week, ETH has since slid even further, to a five-year low.
Read more: ETH crashes to four-year low against BTC
The slightly smaller of the two positions (63k ETH, worth $114 million) was being actively managed over the weekend, adding a total of 2,600 ETH of collateral and repaying some debt to bring its liquidation price down to $1,702.
However, crypto traders became especially concerned about the larger position, which hadn’t been touched in the previous three weeks.
Worried that the owner may be unaware of just how close to disaster their 65k ETH ($117 million) of collateral had become, panic kicked in as Sky’s oracle update was set to $1784, a mere $5 below the position’s liquidation threshold.
Eventually, and with just minutes to spare, the user repaid $1.6M of borrowed DAI tokens, reducing their liquidation price to $1745. Safe, for now…
As confidence wanes, leveraged Ether positions on Sky (formerly Maker) have declined by 10% over the last 24 hours, according to DeFiLlama’s liquidations tracker of on-chain leveraged positions and their respective liquidation prices.
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