IntoTheBlock: ‘High-risk’ crypto loans on Benqi surge to two-year high of $55M
According to analysis company IntoTheBlock's tracked data, the total amount of high-risk loans (defined as loans with a liquidation price within 5%) rose to $55 million on Wednesday, reaching the highest level since June 2022. Cryptocurrency traders typically obtain loans from decentralized lending platforms by locking in digital assets as collateral. The risk here is that if the value of the collateral drops too much, the protocol will liquidate the debt by selling the collateral. A loan within 5% of the liquidation price means that if the price of the collateral drops by 5%, it will no longer cover the loan, triggering liquidation.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
AI Agent: Does the product that became popular in the MeMe craze really have value?
AI Agent, as an auxiliary tool for smart contracts, may develop into a universal infrastructure tool if it can provide practical and tangible value.
Exclusive Interview with Gunzilla Games: How the "Game of the Year" Developer of "Off The Grid" Views Web3 Game Skepticism
In an interview, Theo Agranat, the Web3 Director of Gunzilla Games, discussed the barriers to widespread adoption of blockchain in video games, the regulations that may impact the industry in the future, and why skepticism will always accompany players.
The top three US spot Bitcoin ETF net inflows in 2024 are IBIT, FBTC, and ARKB
AAA Web3 game Seraph "Dark Seraph" is about to launch TGE
Trending news
MoreCrypto prices
More
