Catenaa, Wednesday, March 12, 2025-A crypto whale narrowly avoided a massive $16 million liquidation on Maker on Monday as Ethereum’s price teetered near his liquidation threshold, blockchain data shows.
The anonymous trader, who holds a $75 million loan backed by 65,675 ETH, scrambled to stabilize his position after ETH dipped below $2,000. He first injected 2,000 ETH from Bitfinex, then later sent $1.5 million in DAI from Binance to lower his liquidation price from $1,932 to $1,836.
The near-liquidation event unfolded as crypto markets tumbled following President Donald Trump’s announcement that tariffs will remain in place. Bitcoin slipped below $80,000, and Ethereum dropped dangerously close to liquidation levels for large DeFi borrowers.
MakerDAO, a decentralized lending platform, liquidates borrowers whose collateral falls below a set threshold, applying penalty fees and auctioning assets to repay outstanding loans. Chronicle Labs, which provides Maker’s pricing oracles, confirmed that if ETH falls below $1,836, the whale’s position could be forcibly closed.
On-chain analysts tracking the loan noted that liquidation is not instant. MakerDAO’s system provides an hour-long window for borrowers to intervene. While the trader has temporarily secured his position, further declines in ETH price could still trigger liquidation unless more collateral is added or debt is repaid.
