Journalist Colin Wu appreciated the risks of possible liquidations on MakerDao

According to Defillama, 2 major MakerDao positions are at risk of liquidation when the price of Ethereum is reduced to $ 1792 and $ 1848. The famous analyst and reporter Colin Wu explained what is happening on the market. He noted that the total amount of these positions is about $ 234.7 million. The current price of ETH ranges near these levels, which causes concern among investors.

According to the researcher, Oracle Security Module (OSM) MakerDao uses a median price of several sources with a delay of one hour. This prevents instant liquidation for short -term fluctuations in quotations and gives investors time to adjust their positions. However, with a prolonged decrease in the cost of ETH, this mechanism may be insufficient to prevent liquidation.

Earlier, on March 11, one of the positions escaped forced closure due to the repayment of the debt and the introduction of additional support. The second – remains inactive for 5 months, which increases the likelihood of its elimination with a further drop in the ether course.

According to Wu, and other analysts, the closure of such large positions can lead to additional pressure on ETH marketenhancing the descending trend. Investors are recommended to carefully monitor the dynamics and manage their transactions in a timely manner in order to avoid compulsory liquidation.

Against the background of the current market volatility, it is important to consider the risks associated with secured debt positions in Defi protocols. Effective pledge management and constant monitoring of market conditions will help minimize potential losses. In general, the situation with the position of MakerDao emphasizes the importance of caution and proactive approach when investing in decentralized financial instruments. Market participants should be prepared for a quick reaction to changes in market conditions.

Author

Peter Ivanov