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October 31, 2023

Risks of On-Chain Liquidations in DeFi Sector

Liam O'Sullivan
Written byLiam O'SullivanWriter
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
Liam O'Sullivan
Liam O'Sullivan
About

Liam O'Sullivan, an Irish digital maestro, seamlessly fuses his impeccable command of English with an enthusiastic penchant for online gaming. Highly regarded for his localization expertise, Liam fine-tunes online casino guides, ensuring they resonate profoundly with the diverse English-speaking populace.

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