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/biz/ - Business & Finance

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17652567 No.17652567 [Reply] [Original]

50 ETH gone like that

>> No.17652887

>>17652567
Explain this i dont understand anything in that pic. Is that an account black market?

>> No.17652967

>>17652887
As I understand it, DAI creation happens when people lock up ethereum as collateral. say you lock up $1000 worth of eth, you can mint $800 worth of dai, and you're 20% overcollateralized.

If the price of eth falls rapidly you're now undercollateralized and your collateral goes up for auction

The way to prevent this would be to return the DAI you minted back to the contract, or put or more eth so you have sufficient collateral again

>> No.17653094
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17653094

bitch i got that liquidation at 156

>> No.17653165
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17653165

>>17652567
LIQD

>> No.17653338

>>17652887
maker lets you borrow DAI (USD soft peg) against ETH or BAT as collateral, current liquidation ratio is
1.5, meaning if you have 150 USD worth of ETH (or BAT) against 100 DAI of debt then your ETH gets sold and you lose 21% in addition of the DAI proceeds (8% stability fee plus 13% liquidation fee), you get to keep the ETH that wasn't needed to pay off the debt and stability fee and liquidation penalty, today's volatility is causing some liquidations

>> No.17653597

>>17653338
>>17652967
Thanks anons this helped. Didnt know DAI existed

>> No.17653612

>>17653597
https://defipulse.com/