DAI Goes Off Peg on Coinbase, Liquidates Nearly $100 Million on Defi – Trustnodes

DAI Goes Off Peg on Coinbase, Liquidates Nearly $100 Million on Defi

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Dai off peg on Coinbase, Nov 2020

One dai reached 1.3 USD/C on Coinbase today at 9:57 CET, staying there until 10:00 CET when two big red candles brought it back down closer to the peg.

The out of peg situation began developing at around 9:12 CET, 8:12 UTC, with it gaining more leg at around 9:38.

It then goes nuts at around 9:55, with it even pausing at $1.3 for four minutes despite the huge arbitrage opportunity here as dai maintained its peg on Kraken and other exchanges.

Dai out of peg on Coinbase, Nov 2020
Dai out off USDC peg on Coinbase, Nov 2020

Interestingly this out of peg situation occurred on the DAI/USD pair on Coinbase as well, and only on Coinbase.

Dai goes off dollar peg on Coinbase, Nov 2020
Dai goes off dollar peg on Coinbase, Nov 2020

Here we can see a lot more clearly what happened, with the situation beginning to get out of hand at 8:39 UTC, continuing until 8:55 where dai stays at around $1.34 for four minutes.

The timing coincides with the ETH/EUR pair going nuts at Coinbase and again only at Coinbase, with it unclear whether there’s any relationship.

There is however apparently a relationship between Compound and Coinbase because according to Julien Bouteloup of Curve, Compound is using Coinbase’s DAI/USDC oracle.

That led to a liquidation of some $88 million, with 46 million of it belonging to Comp’s 3rd biggest farmer. While another one got rekt of $17.5 million over several transactions according to Alex Svanevik, the CEO of Nansen data analytics.

All of it meaning arbitragers have been having a field day today especially if they paid attention to Coinbase which has been all over the place this Thanksgiving.

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