Exchanges· ★★· bearish·

EarnPark strategies lose about 30% after Binance shared-account liquidation

  • —The Aug. 23 liquidation hit Maker Core, BTC LP, ETH LP and ETH DeFi strategies sharing one Binance account
  • —Effective leverage at the time of liquidation was about 5.5x
  • —EarnPark's risk model valued collateral at market price without Binance's haircuts
  • —EarnPark will distribute recovered funds by each strategy's Aug. 23 participation share
Why it matters: The case highlights shared-account risk and mismatches between a manager's risk model and exchange margin rules for DeFi strategies.
#BTC#ETH#PARK
Source: TokenPost
More on this
Exchanges · Sep 29
Daily digest: Binance adds 5 stocks, Strategy and Bitmine expand crypto treasuries
 Exchanges · yesterday
Sweden's Avanza Bank holds $298K in Strategy shares
 Exchanges · Oct 14
Metaplanet and Strategy shift capital to share buybacks over Bitcoin