Ethereum Plunge: $106 Million Liquidated in DeFi Storm

A dramatic drop in Ethereum prices, reaching a 14% decline in just 24 hours, triggered massive liquidations on the DeFi platform Sky. The incident highlighted the vulnerability of decentralized ecosystems to market volatility and algorithmic complexities. This article explores how an over-collateralization ratio fueled the rapid liquidation process, leaving investors exposed to significant losses. We delve into the mechanics of Sky’s protocol, explore the role of liquidators in these events, and analyze the broader implications for the future of DeFi. ]