ETH fell to a two-month low, and positions on MakerDAO and Compound faced liquidation risk

On March 10, it was reported that after ETH plummeted to a two-month low of $1373, several on-chain positions faced the risk of liquidation. According to DeFiLlama’s data, the $9.2 million position on MakerDAO will be cleared at $1367, while the $29.6 million position on Compound will be cleared at $1241 through the smart contract of the agreement.

Interpretation of this information:

The recent dip in Ethereum’s price has put several on-chain positions at risk of being liquidated, causing concern among investors. On March 10th, ETH hit a two-month low of $1373, leading to the $9.2 million position on MakerDAO and the $29.6 million position on Compound to be at risk.

DeFiLlama’s data shows that MakerDAO’s position will be cleared at $1367 and Compound’s position will be cleared at $1241 through the smart contract agreement. This means that if the price of ETH drops below these levels, the positions will be automatically liquidated to prevent further loss.

This news highlights the inherent risk that comes with investing in cryptocurrencies, particularly in the volatile world of decentralized finance (DeFi). While DeFi offers new opportunities for investors to earn high returns on their investments, it also comes with significant risks, including the possibility of liquidation in times of market downturns.

Investors must stay informed and vigilant, keeping a close watch on the constantly changing market conditions and adjusting their positions accordingly. It is essential to have a solid risk management plan in place to ensure that any losses are minimized and measured against the potential profits.

Overall, this message serves as a reminder to investors of the importance of hedging their risks by diversifying their portfolios and keeping a vigilant watch over their investments. It highlights the fact that investing in cryptocurrencies, particularly in DeFi, requires a high degree of caution and precaution.