On Tuesday the 24th of September, Ether (ETH) lost about 18% in a really short period of two hours representing a price drop of $35 from $190 down to $155.The price loss sparked serious activity on the Ethereum network which affected MakerDAO’s Ethereum-based decentralized stablecoin, DAI (DAI) as well as its own decentralized finance (DeFi) platform powered by Ethereum.
On said day, the official Twitter for the DeFi Saver, revealed that the fall in ETH price affected normal service. According to the first tweet in a series of four:
“Due to the heavy drop in ETH price coinciding with network congestion and a spike in gas prices today, our automation system struggled to execute all needed CDP ratio adjustments in time.”
The CDP (Collateralized Debt Position) is a loan service that basically allows the production of DAI tokens with collateral safely held till such a time when the tokens are returned. The system is set to automatically “liquidate CDPs once their collateralization ratio has dropped below 150%.”
However, the Ethereum instability affected normal execution and according to a different tweet, the system “failed to protect 2 monitored CDPs, which have been liquidated in the process.” DeFi Saver then asked that the affected owners of the CDP, reach out so that the process can be completed normally.
Yet another tweet in the thread however suggests that all is well with the network because 20 CDPs were protected and unaffected by the network crash. Furthermore, the company notes that all other CDPs are safe and gas prices have been normalized.
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