MakerDAO Liquidation Warning... Ethereum Risks $200 Million Liquidation Below $1,792

# MakerDAO Faces Significant Liquidation Risk at Ethereum Thresholds of $1,792 and $1,848 MakerDAO is at a critical juncture with substantial liquidation risks looming at Ethereum (ETH) price thresholds of $1,792 and $1,848, according to DeFi analysis platform DefiLlama. # Breakdown of Liquidation Figures DefiLlama's data reveals that at the $1,792 level, MakerDAO could face liquidations totaling approximately $124.9 million. Meanwhile, the $1,848 threshold poses a potential liquidation amount of around $109.8 million. Combined, these figures amount to a total liquidation risk of $234.7 million. # Oracle Security and Price Delay MakerDAO employs an Oracle Security Module (OSM) that reports system prices with a one-hour delay. This mechanism means that even if market prices dip below the threshold, the system's actual prices will not immediately reflect this decline. As of now, MakerDAO's oracle reports the price of Ethereum at $1,886, with an expected update to $1,806 in around 40 minutes. # Delay Mechanism to Mitigate Flash Crashes The delay in liquidation is designed to prevent large-scale liquidations triggered by sudden price swings, such as a flash crash. By delaying the price reflection, MakerDAO provides investors time to deposit additional collateral or repay their debts, aiming to mitigate panic selling and reduce market volatility. Essentially, this delay serves as a temporary buffer to ensure market stability. # Concerns Over Sustained Downtrends However, while the delayed reflection serves as a defensive measure, it is not a long-term solution. Continuous downtrends would inevitably lead to liquidations. If large-scale liquidations occur, they could exert considerable sell pressure on the market, potentially driving Ethereum prices down further. Consequently, market participants are closely monitoring the potential impact of MakerDAO's liquidation risks on Ethereum prices. Analysts have suggested that if these liquidation risks materialize, market volatility could escalate significantly. # Current Ethereum Market Status As of the time of writing, the price of Ethereum stands at $1,846, down 9.8% from 24 hours earlier. The market is keenly observing the implications of MakerDAO’s liquidation risks and the influence of oracle price adjustments.