According to Odaily, the collateral positions of Curve's founder on five addresses have all fallen below the liquidation line. The main address (0x7a1...428) is currently undergoing liquidation. Although the positions on the other addresses have also fallen below the liquidation line, liquidation has not yet begun.
The founder of Curve, a decentralized exchange for stablecoin trading, has seen a significant drop in the value of his collateral positions. This has triggered the liquidation process on the main address, while the other addresses are yet to start the process. The liquidation line is a critical threshold in decentralized finance (DeFi) lending platforms. When the value of collateral falls below this line, the borrower's assets are at risk of being sold off to repay the loan.
This situation is indicative of the volatile nature of the cryptocurrency market, where rapid fluctuations in value can lead to significant losses. It also underscores the risks associated with DeFi lending platforms, where borrowers can lose their collateral if the value of their assets falls below a certain threshold. Despite these risks, DeFi platforms continue to attract significant interest due to their potential for high returns.
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