365int
Big Whale, Bigger Loss
An Ethereum whale just learned a painful $106 million lesson. The whale lost a whopping 67,570 ETH after getting liquidated on the DeFi lending platform Sky (formerly known as Maker). This brutal hit happened when ETH prices crashed by around 14% on April 6, triggering liquidation alarms.
How Did This Happen?
Sky allows users to lock their ETH as collateral to borrow DAI, a stablecoin. But there’s a catch — users need to maintain at least 150% collateral. If ETH drops and this ratio dips, Sky doesn’t hesitate to liquidate.
This whale’s collateral ratio fell to 144% when ETH crashed. Boom. Liquidation. Sky seized the ETH and auctioned it to cover the whale’s debt.
Not Alone in the Deep
Another whale almost joined the club, with 56,995 wrapped ETH (about $91 million) hanging by a thread. The recent market turmoil, sparked by fears around US market sell-offs, has made whales very nervous.
ETH in Trouble
ETH dropped to $1,547 — a level not seen since October 2023. It’s down 68% from its all-time high. If this downtrend continues, we might see more whales getting swallowed by the DeFi ocean.
