Ethereum’s Dramatic Fall: A Whale’s $106M Liquidation Comedy! 🐋💸

by

Ah, dear audience! Gather ’round as we unveil the tragicomic tale of an Ether investor, a noble whale, who found himself in quite the pickle on the decentralized finance stage known as Sky! Alas, he has been liquidated to the tune of over $100 million, as the price of Ether took a nosedive! 🎭

This unfortunate whale, possessing a staggering 67,570 ETH, lost a fortune when the asset plummeted by a dramatic 14% on the fateful day of April 6. His collateralized debt position on Sky, as chronicled by the astute DeFi Explore and the ever-watchful Lookonchain, met its untimely demise! 🥴

Now, let us not forget the Sky lending protocol, which, in a fit of rebranding, shed its former identity as Maker last August. It serves as a stage for DeFi participants to create collateralized debt positions, where they offer their crypto—ETH, in this case—to borrow the illustrious stablecoin, DAI! 💰

But beware! The system demands an overcollateralization ratio, typically a lofty 150% or more. This means our dear users must deposit at least $150 worth of ETH to borrow a mere 100 DAI. A fine jest, indeed! 🤡

The protocol, like a vigilant guardian, monitors the value of ETH collateral against the borrowed DAI. Should the value of ETH fall and the collateral ratio dip below the sacred minimum, liquidation becomes a grim reality! And so, our whale’s fate was sealed when the ratio fell to a mere 144% as ETH’s value plummeted! 📉

Meanwhile, in a twist of fate, Spot On Chain reported another whale, who had supplied 56,995 wrapped ETH—worth around $91 million—was teetering on the brink of liquidation! Oh, the drama! 🎭

In this liquidation spectacle, Sky seizes the ETH collateral, auctioning it off to repay the borrowed DAI plus fees. Any remaining collateral, if fortune smiles, is returned to the user. A bittersweet ending, wouldn’t you agree? 😅

Ethereum‘s Price: A Comedy of Errors in Bear Market Lows

ETH prices have crashed a staggering 14.5% in the past 24 hours, plummeting to $1,547 as we pen this tale, all thanks to the wider crypto market’s meltdown in response to President Trump’s tariff-induced market sell-off! Oh, the irony! 😂

The last time ETH danced at such lows was in October 2023, when the crypto world was still mired in bear market despair, nearly a year after the infamous FTX exchange collapse. A tragicomedy for the ages! 🎭

ETH remains down a whopping 68% from its all-time high in 2021, and further losses may lead to more DeFi users facing liquidation unless they can conjure more collateral. A true test of wit and will! 🧙‍♂️

According to CoinGlass, a staggering 320,000 traders have been liquidated in the past 24 hours, totaling nearly $1 billion! The majority of these liquidations, it seems, have been ETH positions. What a spectacle! 🎉

Read More

2025-04-07 08:55