DAI under pressure: MakerDAO faces $4M liquidation failure after ETH crash
- —ETH lost almost 50% of its value in under a day, triggering a wave of liquidations in MakerDAO
- —Ethereum network congestion let one liquidator close positions for 0 DAI for several hours without competition
- —The system's damage is estimated at $4 million, with an emergency shutdown discussed on the Maker forum
- —DAI is trading about 10% above $1 amid liquidations and fundraising for emergency auctions
Why it matters: The failure exposed the limits of crypto-collateralized stablecoins: Maker's oracle updates hourly while an Ethereum transaction takes 15 seconds, leaving the system unable to react to a sharp crash.
Source: CryptoTicker