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October 31, 2023

Risks of On-Chain Liquidations in DeFi Sector

Emily Tremblay
Written byEmily TremblayWriter
Researched byNikos PapadopoulosResearcher

Introduction

The DeFi sector has experienced a successful month, but it is not without risks. One of the main concerns is the potential for on-chain liquidations triggered by a decline in the price of ETH.

Risks of On-Chain Liquidations in DeFi Sector

On-Chain Liquidations

Currently, there is a $76.2 million position on Aave that will be liquidated if ETH crosses $1,777. Additionally, if the price falls by 20%, over $100 million will be liquidated.

Conclusion

While the DeFi sector has seen positive growth, it is important to be aware of the risks involved. Triggers such as a slight slide in the price of ETH can lead to significant on-chain liquidations. Investors should stay informed and take necessary precautions to mitigate these risks.

About the author
Emily Tremblay
Emily Tremblay
About

Emily, a dynamic blend of tech-savvy and casino enthusiast, hails from the snowy landscapes of Canada. With her innate grasp of cultural nuances, she ensures online casino guides resonate deeply with Canadians. Emily's spirited and engaging nature makes her a favourite among peers.

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