Neils I want to let every person know who was liquidated here and lost all of their collateral all of us at Maker have the greatest sympathy. This was an unprecedented event and it is unfortunate that risks in total to the community may not have been made as clear as some wish. A lot of effort and attention was paid to doing just that and rest assured any inaccuraces in that will be corrected and addressed.
The market could have quickly gone to $50 and even if your collateral cleared it may have not been enough to cover your borrowed DAI. This is the real reality with collateralized loans where backing collateral value relative to the stablecoin being borrowed drops precipitously.
Even if the best market prices were paid virtually all borrowers who were liquidated AT BEST would have had no more than 21% of their collateral left in their vaults based on the current configuration of the system and I want all of you to know that Maker and MKR holders are basically eating the other 79% of the losses on all of the 0 auction bid losses.
I also want DAI holders to realize IF the system ever experiences a Emergency SHutdown the DAI PEG will theoretically follow a value curve related to the combined Collateral Oracle OSM price/LIVE collateral price. I skip doing the sum over BAT and ETH and simply consider ETH. IF the system is ES’d at $100 USD/ETH and the price falls to $50 USD/ETH the DAI peg value based on backing collateral in the system would be .5USD. Similarly if the price increased to $200 the DAI PEG value would approach $2 USD/DAI. These and many other risks are present.
I spent a long time before purchasing DAI and using the system to borrow before I entered these markets and hope others will do the same…
Again I am sorry for your loss and hope the value you hold of the loan at least provides some partial compensation for your collateral.!