Prominent Ethereum-based lending and borrowing protocols unwound a record $200 million in crypto loans on Friday, reports godbole17.
Ether's recent sell-off has brought pain to some and cheer to others, underscoring the zero-sum nature of trading.
Borrowers are liquidated when a crypto crash pushes the collateral's value below the safety threshold. The process is analogous to derivatives exchanges executing a forced closure of long or short positions due to margin shortage. Users put ether as collateral on the Maker platform, opening a vault position to borrow DAI equivalent to a portion of the collateral's value. Borrowers need to pay back the DAI along with the loan interest when they want to withdraw their collateral.
The liquidations penalty is calculated as a percentage of the debt. Maker also has a debt ceiling, a mechanism controlling the maximum amount of DAI that can be generated against different collaterals. If the ceiling is hit, users must pay down their existing debt before taking more.When a position in liquidated, the ETH deposited as collateral is sold for DAI, which is then burned, or destroyed.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Why Ethereum Will Continue To Be A Market Leader, Coinbase AnalystsEthereum has been the leading blockchain in the smart contracts space since it first became prominent. It has maintained this title through the decentralized finance (DeFi) and non-fungible tokens (NFTs) boom. However, there have been fast competitors that have popped up with the advent of both...
Les mer »
Bitcoin, Ethereum Aim to Rebound From Brutal Downturn
Les mer »
Ethereum Scraps “ETH 2.0” in Roadmap Rebrand
Les mer »
Bitcoin, Ethereum Technical Analysis: BTC Falls to 5-Month Low – Markets and Prices Bitcoin NewsThe selloff in cryptocurrencies continued to start the week, with bitcoin falling to its lowest level since July.
Les mer »
JPMorgan Says Ethereum Is Losing NFT Market Share to SolanaEthereum’s dominance in NFTs is shrinking because of congestion and high gas fees, a jpmorgan analyst report says.
Les mer »
Sales of NBA Top Shot NFT Surge by 72% in The Secondary Market | HackerNoonNBA Top Shot was largely credited with kicking off the widespread NFC obsession in March of last year. It looks like the hype is coming back.
Les mer »