Ethereum’s ETH has been spiral on Monday, endangering a large loan of decentralized finance (DEFI) on the Sky loan platform (previously manufacturer) to be liquidated.
The endangered borrower obtained a loan of $ 74 million in Dai Stablecoin by promising 65,680 ETH as a guarantee, with a value of almost $ 130 million today, according to a vault data board of the sky.
In a weak cryptography price, ETH fell almost 10% during the day to $ 1,820, below the loan liquidation level slightly above $ 1,900.
Debank’s Blockchain data show that the borrower withdrew 2,000 ETH, with a value of almost $ 4 million at current prices, from Crypto Exchange Bitfinex on early Monday and deposited the assets to the manufacturer’s vault, underpinning the loan guarantee to avoid liquidation.
After the deposit, the level of liquidation for the loan was around $ 1,875 ETH price, which was still higher than the last price of ETH.
Read more: Ether approached dangerously to mass liquidation. Here are some levels to see
It is not the only loan defi in danger of a rapid fall of ETH prices. There are about $ 13.6 million in loans at a liquidation level of $ 1,857 ETH, and another $ 117 million loans that are settled at $ 1,780, as shown by the defrite data. There are about $ 366 million of debt that must be settled if ETH falls another 20%, according to Defillama data.
Defi settlements may have a significant impact on the price of a collateral asset, since the protocol sells or actions outside the guarantee of a liquidated loan, exacerbating the sale pressure.
