DeFi Saver, a platform that provides its users with advanced control over Ethereum collateralized debt positions, suffered a delay in their automation system forcing a few monitored CDPs into liquidation.
Their purpose is to create Dai in exchange for collateral which they then hold in escrow until the borrowed Dai is returned, according to MarkerDAO. CDPs offer a way to leverage exposure to Ethereum by over 150 percent.
On Sept. 15, DeFi Saver introduced a new feature to its dashboard called CDP Automation.
The tool enables its customers to make configurations into their CDPs to better protect them from liquidation.
It also allows DeFi Saver to automatically arrange safe CDP values based on ratio targets set up by users.
Due to the sudden crash in Ether's prices, the CDP Automation system did not execute all of the CDP ratio adjustments in a timely manner, causing it to liquidate 2 monitored CDPs, each potentially containing a large amount of ETH collateral.
"DeFi Saver's CDP Automation was doing everything it should, but unfortunately, at one point the transactions that the system sent to the Ethereum network got delayed. Because of the sudden drop in ETH price, the number of transactions users were attempting to make on Ethereum grew even greater," said Janković.
Although automated CDP protection is still in beta, the DeFi Saver team is taking full responsibility for the damage caused and has offered its users to recover the lost funds.
The CDP Automation system's gas prices estimate algorithm has also been updated to increase gas amounts more quickly and re-send any stuck transactions sooner in order to avoid this issue from happening again.
As DeFi Saver continues improving its CDP platform, Ethereum network congestion remains a greater issue that could cause more problems in the future.
MakerDAO service DeFi Saver CDP liquidation protection slips as ETH price crashes
Udgivet den Sep 25, 2019
by Cryptoslate | Udgivet den Coinage
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