This April, the Ethereum lending market experienced a wave of liquidations, surpassing any monthly record since the turmoil in June 2022.
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Highest Volume of Liquidations Since Terra Collapse!
Curve Founder Faces Another Liquidation Crisis
Widespread Market Impact
According to data from The Block, lending protocols Aave and Compound were the epicenter of this wave, with nearly $80 million and $50 million in liquidations, respectively. The total liquidation volume reached its highest level since the Terra ecosystem collapse in June 2022, amounting to $40 billion.
In recent days, the crypto market has seen a correction, leading to a crisis for lending users on various chains. Curve founder Michael Egorov is also on the list. On-chain analyst Yu Yin discovered that Egorov’s lending position, valued at over $90 million, is once again at risk of liquidation, with some positions having a health factor as low as 1.1.
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OTC Fundraising and Repayment Again? Curve Founder CRV Faces Liquidation Crisis, Lending Health Factor as Low as 1.1
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The impact of this wave of liquidations extends beyond lenders, affecting many traders as well. According to CoinGlass data, crypto liquidations have reached nearly $1.7 billion in the past three days, primarily impacting bullish or long traders.
Aave
Compound
Ethereum
Lending
Related Readings:
Compound Adds ARB and Others as Collateral, But Arbitrum Version Still Limited in Scale
Lending Protocol Compound Launches Third Version “Comet”: Focuses on USDC Market, Expands to EVM-Compatible Chains.