$6.67 Million WBTC Long Position Liquidated on Compound After Bitcoin Drops Below $100,000

PeckShield reports a whale’s WBTC-backed position on Compound was liquidated for $6.67M as BTC dipped under $100K, affecting USDT and DAI loans.

BTC

USDT

WBTC

118d ago

Summary

PeckShield monitoring revealed that a whale on Compound lost $6.67 million in WBTC-backed loans after Bitcoin’s price fell below $100,000. The address had used WBTC as collateral to borrow USDT and DAI, and the price drop triggered automatic liquidation across both loan positions.

Terms & Concepts

WBTC (Wrapped Bitcoin): A tokenized version of Bitcoin that runs on the Ethereum blockchain, backed 1:1 by Bitcoin.
Compound: A decentralized finance (DeFi) lending protocol allowing users to lend, borrow, and earn interest on cryptocurrency assets without intermediaries.
Liquidation: The process of automatically selling a borrower’s collateral to repay a loan when their collateral value falls below required thresholds.