**Title: A Crypto Whale Steps In with Millions to Save MakerDAO from a $300 Million Liquidation as Ether Prices Dive**
In a dramatic turn of events, a cryptocurrency whale made a significant emergency deposit of millions in Ether and Dai to MakerDAO, aiming to avert a staggering $300 million liquidation as Ether’s value took a nosedive. This urgent action came on the heels of another substantial liquidation involving Ether on the DeFi platform Sky, with prices plummeting to lows not seen since October 2023. As investor anxiety grew, this whale injected millions to safeguard their Ethereum assets from potential liquidation.
The unidentified whale was facing a precarious situation with a massive 220,000 ETH position on MakerDAO, a decentralized finance lending platform. To stave off liquidation, the whale deposited 10,000 Ether, valued at over $14.5 million, along with 3.54 million Dai (DAI), effectively raising the liquidation price of their position, as reported by blockchain analytics firm Lookonchain. The whale’s actions included repaying 3.52 million DAI and depositing 10,000 ETH, which lowered the liquidation threshold to $1,119.3. Should Ether’s price fall to this level, the whale’s substantial 220,000 ETH position, worth around $340 million, would face liquidation.
This incident unfolded shortly after another Ether investor suffered a liquidation exceeding $106 million on the Sky platform. That investor lost over 67,000 tokens as the asset’s value dropped by approximately 14% on April 6. Sky operates on an over-collateralization model, typically requiring a ratio of 150% or more, meaning users must deposit at least $150 worth of assets to borrow 100 DAI.
Recent data from CoinGlass reveals that over 446,000 positions were liquidated in the past 24 hours, resulting in total losses surpassing $1.36 billion, which includes $1.21 billion in long positions and $152 million in short positions. Ether’s price has seen a sharp decline of 14.5% in the last day, currently trading at $1,502. This downturn is part of a broader crypto market slump, reflecting ongoing market conditions. The last time ETH was valued this low was in October 2023, during a period of turmoil following the collapse of the FTX exchange. Currently, ETH remains 68% below its all-time high from 2021, and further price declines could trigger additional liquidations for DeFi users unless they bolster their collateral.
Sky enables DeFi users to establish collateralized debt positions by providing crypto, such as ETH, to borrow the platform’s stablecoin, DAI. The system continuously monitors the value of ETH collateral against the borrowed DAI. If the value of ETH decreases and the collateral ratio falls below the required minimum, liquidation can occur. In this instance, liquidation happened when the ratio dipped to 144% as ETH’s price fell. Additionally, Spot On Chain reported that another whale, who supplied 56,995 wrapped ETH worth around $91 million to borrow DAI, was also nearing liquidation.
In a liquidation event, Sky seizes the digital asset collateral and auctions it off to repay the borrowed DAI plus any associated fees, with any remaining collateral returned to the user. As of today, ETH is trading at $1,502, reflecting a 14.5% decrease.
