Crypto market drop triggers liquidations across MakerDAO, Compound lending protocols

Quick Take

  • Thursday’s crypto crash sent the price of ETH down more than 30 percent
  • Major lending protocols in the DeFi ecosystem reported significant numbers of liquidations.

Market data shows that Thursday's crypto market rout brought with it a raft of liquidations on two major Open Finance (DeFi) lending protocols.

Data compiled by The Block shows that the number of liquidations on Compound hit its highest level ever, with the majority of those liquidations in the form of ETH. The data indicates that, at time of data collection, $4.19 million in ETH and roughly $120,000 worth of the USDC stablecoin has been liquidated in the past 24 hours. 

At time of writing, ETH is trading at around $140 – a decline of just under 30% – according to data from Coinbase. It hit a low of $126.36 earlier this morning.

Source: The Block, Dune Analytics

MakerDAO, another DeFi lending platform, also saw a big uptick in the number of liquidations, according to available data.

As shown by the chart below, there were two big liquidation spikes, occurring at 13:19 and 13:35 UTC. Further liquidations are expected throughout the day as the MakerDAO price feed adjusts and gas prices settle back down, allowing liquidators to take over undercollateralized vaults. 

Additional data indicates that the amount of DAI outstanding has fallen by $6 million during the past two days.

As shown by DeFi Pulse, which tracks the Open Finance ecosystem, Maker and Compound constitute the two largest platforms in terms of total value locked.

Of the two, Maker has a publicly-traded governance token – Maker – which, according to Coinbase data, is down approximately 42% on the day and trading at $298.87 at time of writing.



© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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May 5, 2022, 3:17PM UTC