{"id":32418,"date":"2020-11-26T18:11:04","date_gmt":"2020-11-26T16:11:04","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=32418"},"modified":"2025-08-28T08:31:41","modified_gmt":"2025-08-28T05:31:41","slug":"dai-price-spike-on-coinbase-triggers-100m-liquidations-on-compound","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/dai-price-spike-on-coinbase-triggers-100m-liquidations-on-compound\/","title":{"rendered":"DAI price spike on Coinbase triggers $100m liquidations on Compound"},"content":{"rendered":"<p>A brief spike in the price of the DeFi token DAI on Coinbase led to the liquidation of users\u2019 positions on the crypto-lending platform Compound, amounting to millions of dollars.<\/p>\n<p><!--more--><\/p>\n<p>On November 26, the price of DAI in the DAI\/USDC pair on Coinbase briefly rose from the usual $1 to $1.30.<\/p>\n<div id=\"attachment_117741\" style=\"width: 514px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-117741\" class=\"size-full wp-image-117741\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/0-4.png\" alt=\"\u041f\u043e\u0432\u044b\u0448\u0435\u043d\u0438\u0435 \u0446\u0435\u043d\u044b DeFi-\u0442\u043e\u043a\u0435\u043d\u0430 DAI \u043f\u043e\u0432\u043b\u0435\u043a\u043b\u043e \u043b\u0438\u043a\u0432\u0438\u0434\u0430\u0446\u0438\u044e $100 \u043c\u043b\u043d \u0432 Compound\" width=\"504\" height=\"132\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/0-4.png 504w, https:\/\/u1f987.com\/wp-content\/uploads\/0-4-300x79.png 300w\" sizes=\"auto, (max-width: 504px) 100vw, 504px\" \/><\/p>\n<p id=\"caption-attachment-117741\" class=\"wp-caption-text\">Hourly chart <a href=\"https:\/\/pro.coinbase.com\/trade\/DAI-USDC\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">DAI\/USDC<\/a> on Coinbase.<\/p>\n<\/div>\n<p>To borrow on Compound, a user must provide collateral higher than the requested amount. Price feeds are monitored by oracles \u2014 if collateral falls below a certain threshold, positions are liquidated.<\/p>\n<p>Alex Svanevik, founder of the analytics platform Nansen, in a comment to <a href=\"https:\/\/decrypt.co\/49657\/oracle-exploit-sees-100-million-liquidated-on-compound\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Decrypt<\/a> noted that Compound&#8217;s oracle uses Coinbase to obtain price data. The DAI-denominated debt rose by 30%, triggering liquidations across assets that had significantly fallen in price.<\/p>\n<blockquote>\n<p>\u201cAs far as I can tell, Compound did exactly what it should have done. Questions will be asked about the oracle,\u201d he said.<\/p>\n<\/blockquote>\n<p>According to the service <a href=\"https:\/\/loanscan.io\/supplied-liquidity?interval=24h\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">LoanScan<\/a>, liquidations of more than $100 million in the DeFi protocol Compound occurred in the last 24 hours. Losses on dYdX exceeded $7 million.<\/p>\n<div id=\"attachment_117742\" style=\"width: 1012px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-117742\" class=\"size-full wp-image-117742\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/1-365.png\" alt=\"\u041f\u043e\u0432\u044b\u0448\u0435\u043d\u0438\u0435 \u0446\u0435\u043d\u044b DeFi-\u0442\u043e\u043a\u0435\u043d\u0430 DAI \u043f\u043e\u0432\u043b\u0435\u043a\u043b\u043e \u043b\u0438\u043a\u0432\u0438\u0434\u0430\u0446\u0438\u044e $100 \u043c\u043b\u043d \u0432 Compound\" width=\"1002\" height=\"463\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/1-365.png 1002w, https:\/\/u1f987.com\/wp-content\/uploads\/1-365-300x139.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/1-365-768x355.png 768w\" sizes=\"auto, (max-width: 1002px) 100vw, 1002px\" \/><\/p>\n<p id=\"caption-attachment-117742\" class=\"wp-caption-text\">Data: LoanScan.<\/p>\n<\/div>\n<p>According to Svanevik, the events affected the third-largest holder of COMP tokens \u2014 who lost $46 million.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">The 3rd largest COMP farmer took a big hit with the liquidations. Around $46m.<\/p>\n<p>Tx: <a href=\"https:\/\/t.co\/waOEZlh3U1\">https:\/\/t.co\/waOEZlh3U1<\/a> <a href=\"https:\/\/t.co\/QrlkPjJHyc\">pic.twitter.com\/QrlkPjJHyc<\/a><\/p>\n<p>\u2014 Alex Svanevik \ud83e\udded (@ASvanevik) <a href=\"https:\/\/twitter.com\/ASvanevik\/status\/1331927372417921024?ref_src=twsrc%5Etfw\">November 26, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Earlier in November, analysts <a href=\"https:\/\/u1f987.com\/en\/news\/analysts-uncover-a-loophole-in-makerdao-that-could-let-users-dodge-liquidations\">discovered<\/a> a vulnerability that allows users of the DeFi project MakerDAO to split collateralized debt positions into smaller tranches and evade forced liquidation.<\/p>\n<p>Subscribe to ForkLog news on <a href=\"https:\/\/www.facebook.com\/forklog\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Facebook<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A brief spike in the price of the DeFi token DAI on Coinbase led to the liquidation of users\u2019 positions on the crypto-lending platform Compound, amounting to millions of dollars.<\/p>\n","protected":false},"author":1,"featured_media":32419,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1494,1099,1093],"class_list":["post-32418","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-compound-comp","tag-dai","tag-defi"],"aioseo_notices":[],"amp_enabled":true,"views":"19","promo_type":"1","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/32418","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=32418"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/32418\/revisions"}],"predecessor-version":[{"id":32420,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/32418\/revisions\/32420"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/32419"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=32418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=32418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=32418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}