An Ethereum
On April 6, the value of Ethereum fell by around 14%, which led to the forced closure of this investor’s position. The liquidation removed 67,570 ETH, worth roughly $106 million, from the user’s account, according to data from Lookonchain.
During a liquidation, Sky takes control of the user’s Ethereum and sells it to repay the borrowed DAI
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Sky, previously known as Maker
The system follows a rule where users must deposit more value than they borrow—usually 150% or higher. This means for every 100 DAI borrowed, a user must provide at least $150 worth of Ethereum.
The platform tracks the value of the collateral constantly. If the price of ETH drops and the collateral value no longer meets the required ratio, the system steps in and liquidates the position. In this case, the investor’s ratio dropped to 144%, which fell below the minimum and triggered the process.
Meanwhile, the team behind the Conor McGregor-backed crypto project REAL has confirmed the sale failed but assured participants they got their money back. What happened? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
