Compound DAI Oracle Price hitting $1.25

DAI spiked to $1.3 on Coinbase. Compound uses the Open Oracles system which uses Coinbase as the reporter.

Oracle Updates are guarded against big deviations against a Uniswap TWAP as an anchor. There’s an Lower Bound of 80% and upperbound of 120%. This means the price of DAI was able to hit ~$1.25

https://etherscan.io/address/0x922018674c12a7f0d394ebeef9b58f186cde13c1#readContract

Lots of liquidations were caused for people borrowing DAI on Compound.

9 Likes

During this period, 85.2m DAI were repaid by liquidators, who seized collateral from addresses borrowing DAI. In the largest liquidation , an address “yield farming” had 46.2m DAI repaid, and 49.8m DAI seized.

In total, 124 addresses of 225,793 were impacted; there are no under-collateralized accounts in the protocol; and all markets are healthy. However, addresses that were liquidated feel that the risk parameters & price feed were too aggressive / onerous.

1 Like