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XVS Price Plunge Triggers $930K Venus Loan Liquidation

A 40% crash in XVS price led to a whale’s $1.09 million loss on Venus Protocol, with further liquidation risk if the token dips below $3.2.

USDT

Summary

XVS dropped 40% from $5.3 to $3.1 in a day, causing the liquidation of a whale’s Venus Protocol loan. The position involved 532,000 XVS valued at $2.81 million, with 287,000 XVS sold to repay $930,000 USDT, resulting in a $1.09 million loss. The health rate remains at 1.07, signaling high risk of additional liquidation if XVS trades under $3.2.

Terms & Concepts
  • Venus Protocol: A decentralized lending platform on Binance Smart Chain that allows users to borrow and lend cryptocurrencies using collateral.
  • Liquidation: The process of automatically selling a borrower's collateral when its value falls below the required threshold to repay outstanding loans.
  • Health Rate: A metric used in lending protocols to measure the safety of a borrower's position; values close to 1 indicate high liquidation risk.