ETH suicide diving panic due to Maker liquidation? This is a misunderstanding

Just now, ETH jumped from a suicide dive near $ 160, a drop of more than 30%, and the lowest fell to $ 125, and led other currencies to decline collectively.


Related to MakerDao liquidation panic?

Coincidentally, Xuying Kai, founder of BlockVC, said on Weibo 3 hours ago: "Tell a horror story, the world's largest DeFi project MakerDao, if Ethereum falls to $ 160, it will start a large-scale liquidation and liquidation. I do n’t know Will this be a systemic risk in this round of decline? "


Subsequently, MakerDao official Wei Wei said: "This picture is a single mortgage version, which only accounts for 1/6 of the entire system. The entire Maker system's mortgage rate is about 300%, and can theoretically withstand a 80% drop. Don't worry too much. "

On November 18 last year, the decentralized lending agreement MakerDAO released the multi-asset mortgage Dai (MCD). After the MCD went live, the single mortgage Dai was renamed Sai. However, at present, many statistical platforms do not distinguish between the old and new versions, and some do not yet support the new version of MakerDAO, so there will be conflicts in the data caliber.

屏幕快照 2020-03-12 下午7.09.14

According to data from DeBank, the new version of MakerDAO has a fund size of $ 386 million and a total borrowing of $ 106 million and a mortgage rate of 302.39%; while the old version of MakerDAO has a fund size of $ 67 million and a total borrowing of $ 20 million and mortgage The rate is 333.57%. In other words, the old version currently accounts for about 1/5 of the total borrowing volume (officially speaking, 1/6 is no problem).

There is no risk of DeFi stomping on ETH

The question about the MakerDao closing position has sparked discussion among netizens. Some people said that the two of them were not talking about one thing. The MakerDao official said that they could withstand a 80% drop in Ethereum, while Xu Yingkai said that if Ethereum fell to 160 US dollars, a large proportion of orders would reach the liquidation level. Warehouse line. In other words, MakerDao has a good mechanism to bear the risk of Ethereum's decline, but the liquidation line will cause Ethereum itself to have further risks of decline. The concern of all netizens is whether it will cause price stamping?

Pan Chao told Babbitt: "Even if the original picture shows that ETH dropped to 160 US dollars, not much will be liquidated. Only about 1 million will not constitute a stampede."

DeBank founder Hong Bo also said that it will not cause tramples. There are 3 reasons: 1. The on- chain liquidation is very fierce, and the amount of liquidation is nine cattle in the entire currency circle; 2. The price of everyone is a predictor, the price outside the chain is introduced, plus MakerDAO There is a delay in the effective time of the platform's oracle machine, which further reduces this risk to a great extent; 3. The leverage ratio of the DeFi lending platform is very low, which is not worth mentioning compared to the centralized leveraged futures exchange.

It can be seen that this round of slump is not directly related to the MakerDAO liquidation storm, but it is not ruled out that this is the reason for the Air Force to initiate operations. The threshold of DeFi is still too high. Many people outside the circle lack the perspective to discern, so everyone is a little bit worried and panic.