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The DeFi project Compound recorded a record liquidation of software

The DeFi project Compound recorded a record liquidation of software

The project decentralized financing Compound on 8 March eliminated provision at the ETH in the amount of $2 760 534. This is a record figure since the launch of the second version of the Protocol in may last year.

On March 8, the ETH rate collapsed from $250 to $200. In this regard, some of the loans were insufficiently secured, which led to liquidation. MakerDAO and the decentralized exchange dYdX also reported an increase in the volume of collateral liquidations.

“I think the thing is that Compound has a more aggressive collateral ratio. And the incentives for liquidation are higher there, because you are paid immediately, and not through an auction, ” said Tarun Chitra, CEO of the defi gauntlet Networks modeling platform.

The total volume of loans issued on the three platforms decreased by 1.8% – from $75 million to $73.68 million. This shows that traders are increasing their positions.

Note that along with ETH, the rate of the first cryptocurrency also decreased. At the moment, bitcoin is trading at $7,900.

It was recently reported that the Compound project plans to launch a COMP token to provide Protocol management.