#TradingAnalysis101 /

The whale avoided a $16 million penalty while liquidating a DeFi position worth $75 million!!!

A major Maker user avoided a penalty of approximately $16 million for a loan received in 2021 of around $75 million by timely sending 2000 ETH and 1.5 million DAI.

Before sending additional ETH, the liquidation price was about $1932.08. The debt-to-collateral ratio of 65,675 ETH dropped to 176%.

Such actions reduced the liquidation level to $1874.98 and increased the loan-to-value ratio to 181.95%.

Against the backdrop of further declines in Ethereum, the user withdrew 2882 ETH and directed them towards repaying the borrowed 5.21 million DAI, utilizing the Withdraw & Payback function. This allowed the liquidation price to be lowered to $1781.28.