{"id":114558,"date":"2019-09-25T18:25:08","date_gmt":"2019-09-25T18:25:08","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=114558"},"modified":"2019-11-07T02:43:41","modified_gmt":"2019-11-07T02:43:41","slug":"makerdao-defi-saver-liquidation-protection-slips-ethereum","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/makerdao-defi-saver-liquidation-protection-slips-ethereum\/","title":{"rendered":"MakerDAO service DeFi Saver CDP liquidation protection slips as ETH price crashes"},"content":{"rendered":"<p><a href=\"https:\/\/defisaver.com\/\">DeFi Saver<\/a>, a platform that provides its users with advanced control over Ethereum collateralized debt positions, <a href=\"https:\/\/twitter.com\/defisaver\/status\/1176606690411778052?s=21\">suffered<\/a> a delay in their automation system forcing a few monitored CDPs into liquidation.<\/p>\n<h2>DeFi Saver CDP Automation<\/h2>\n<p>Collateralized debt positions (CDPs) are smart contracts that run on the <a href=\"http:\/\/cryptoslate.com\/coins\/ethereum\">Ethereum<\/a> network as one of the main components of the Dai stablecoin system. Their purpose is to create <a href=\"https:\/\/cryptoslate.com\/coins\/dai\/\">Dai<\/a> in exchange for collateral which they then hold in escrow until the borrowed Dai is returned, <a href=\"https:\/\/cdp.makerdao.com\/help\/what-is-a-collateralized-debt-position-cdp\">according<\/a> to <a href=\"https:\/\/cryptoslate.com\/products\/makerdao\/\">MarkerDAO<\/a>. CDPs offer a way to leverage exposure to Ethereum by over 150 percent (by using new loans to open additional positions).<\/p>\n<p>On Sept. 15, DeFi Saver <a href=\"https:\/\/medium.com\/defi-saver\/automatic-liquidation-protection-and-leverage-increase-is-now-live-in-defi-saver-beta-e53b6194b35a?source=---------2------------------\">introduced<\/a> 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.<\/p>\n<p>In the last 24 hours, Ethereum plunged over 22 percent from a high of over $197 to a low around $154 in tandem with the overall market crash. Due to the sudden crash in Ether\u2019s 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.<\/p>\n<figure style=\"width: 1043px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/g7nfBrrvI9AC-hE3kamoxarf3B_w7EWY4k7C8-qWosixojF4hCrcyn7ZvD1LL3BXsSsexY7NQZtZhNwu32zC2H3KZrJEWx6AvZU13Wxw99WczjSST5G3h8OHdKBymJXRi48R95HB\" alt=\"Ethereum US dollar price\" width=\"1043\" height=\"603\" \/><figcaption class=\"wp-caption-text\"><a href=\"https:\/\/www.tradingview.com\/chart\/ETHUSD\/\">ETH\/USD<\/a> by TradingView<\/figcaption><\/figure>\n<p>Nikola Jankovi\u0107, content and community manager at DeFi Saver, told CryptoSlate that the root of the automated system issue was related to a number of transactions delayed on the Ethereum network.<\/p>\n<blockquote><p>\u201cDeFi 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,\u201d said Jankovi\u0107.<\/p><\/blockquote>\n<p>As a result, the transactions were not completed in a reasonable amount of time, triggering the liquidations. A spike in gas prices over the last few hours added to the congestion that the Ethereum network is experiencing while <a href=\"https:\/\/etherscan.io\/chart\/networkutilization\">network utilization<\/a> exceeded 90 percent.<\/p>\n<blockquote><p>\u201cOur system was designed to increase gas prices as the network congestion increases, but on this occasion everything happened too suddenly for it to react and adjust accordingly, causing some transactions to get omitted from the block when they were supposed to be mined. During the time it took us to update the gas prices algorithm, the price continued dropping, eventually causing the liquidations,\u201d added Jankovi\u0107.<\/p><\/blockquote>\n<p>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 firm also revealed that 20 unique CDPs were automatically protected during the recent <a href=\"https:\/\/cryptoslate.com\/bitcoin-drops-15-indicators-show-potential-for-decline-to-6500\/\">market crash<\/a> and all the other monitored CDPs are safe within their configured ratios.<\/p>\n<p>The CDP Automation system\u2019s 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.<\/p>\n<p>As DeFi Saver continues improving its CDP platform, Ethereum network congestion remains a greater issue that could cause more problems in the future. Even Ethereum co-founder <a href=\"https:\/\/cryptoslate.com\/people\/vitalik-buterin\/\">Vitalik Buterin<\/a> <a href=\"https:\/\/www.thestar.com\/business\/2019\/08\/19\/ethereums-vitalik-buterin-on-reducing-cryptocurrencys-risks.html\">remarked<\/a> the \u201cblockchain is almost full\u201d in a comment about network scalability. Although miners have recently <a href=\"https:\/\/cryptoslate.com\/ethereum-miners-capacity-20-congestion\/\">expanded<\/a> the gas limit on Ethereum by 20 percent, it seems like the only <a href=\"https:\/\/cryptoslate.com\/ethereum-lose-confidence-eth-scaling-issues\/\">lasting solution<\/a> is the highly anticipated ETH 2.0 upgrade.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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. DeFi Saver CDP Automation Collateralized debt positions (CDPs) are smart contracts that run on the Ethereum network as one of the main components of the [&hellip;]<\/p>\n","protected":false},"author":148,"featured_media":116143,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46940],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>MakerDAO service DeFi Saver CDP liquidation protection slips as ETH price crashes<\/title>\n<meta name=\"description\" content=\"DeFi Saver, a platform that provides its users with advanced control over collateralized debt positions, forced a few monitored Ethereum CDPs into liquidation.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/makerdao-defi-saver-liquidation-protection-slips-ethereum\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MakerDAO service DeFi Saver CDP liquidation protection slips as ETH price crashes\" \/>\n<meta property=\"og:description\" content=\"DeFi Saver, a platform that provides its users with advanced control over collateralized debt positions, forced a few monitored Ethereum CDPs into liquidation.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/makerdao-defi-saver-liquidation-protection-slips-ethereum\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2019-09-25T18:25:08+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-11-07T02:43:41+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/11\/cryptoslate-cover.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ali Martinez\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"MakerDAO service DeFi Saver CDP liquidation protection slips as ETH price crashes\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ali Martinez\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/makerdao-defi-saver-liquidation-protection-slips-ethereum\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/makerdao-defi-saver-liquidation-protection-slips-ethereum\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/#person\",\"name\":\"Ali Martinez\",\"url\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-300x300.jpg\",\"caption\":\"Ali Martinez\"},\"jobTitle\":\"Analyst\",\"description\":\"Ali came across Bitcoin\u2019s whitepaper in 2014. 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He was so fascinated by the idea of a decentralized, borderless, and censorship-resistant currency that he started accumulating BTC since then. Ali has been working as a content writer for some of the leading media outlets in the cryptocurrency industry.","url":"https:\/\/cryptoslate.com\/author\/ali-martinez\/"}]}},"_links":{"self":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/114558"}],"collection":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/users\/148"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/comments?post=114558"}],"version-history":[{"count":4,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/114558\/revisions"}],"predecessor-version":[{"id":116149,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/114558\/revisions\/116149"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media\/116143"}],"wp:attachment":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media?parent=114558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/categories?post=114558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/tags?post=114558"},{"taxonomy":"prediction_market_topic","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/prediction_market_topic?post=114558"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/post_folder?post=114558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}