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October 31, 2023

Risks of On-Chain Liquidations in DeFi Sector

Priya Sharma
Written byPriya SharmaWriter
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
Priya Sharma
Priya Sharma
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Mumbai-born Priya is India's rising star in the realm of online casino guides. With a knack for fusing traditional Indian gaming narratives with cutting-edge digital dynamics, she's an essential bridge between classic and contemporary gaming for a vast Indian audience.

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