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Comment by pawelduda

3 years ago

Not sure if that's what parent is about, but the reference may be to on-chain lending solutions that use price oracles to determine liquidation prices based on amount of collateral deployed.

There are 9-digit lending positions in $ of crypto collateral that will be forcefully sold into the market if BTC/ETH keep dropping. Unless more collateral will be deployed, which lowers the forced liquidation price.