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The decentralized finance (DeFi) sector, a major Ether (ETH) investor has been liquidated for over $100 million as ETH prices tumbled by more than 14% on April 6. The liquidation occurred on the DeFi lending platform Sky—formerly known as Maker—following a steep decline in ETH’s value to around $1,496.
According to data from Maker Vaults explorer DeFi Explore and on-chain tracker Lookonchain, the whale lost a staggering 67,570 ETH—worth approximately $106 million—after their collateralized debt position fell below the required threshold. Sky, which allows users to borrow its stablecoin DAI by overcollateralizing assets like ETH, requires a minimum collateral ratio of 150%. This whale’s position dropped to 144%, triggering automatic liquidation.
As $ETH plummeted, the 67,570 $ETH($106M) held by this whale on #Maker was liquidated!https://t.co/kXSkKh1H0P pic.twitter.com/IDjzbQ8P3z
— Lookonchain (@lookonchain) April 7, 2025
Sky’s system is designed to protect its lending pool by auctioning seized collateral if the value backing the borrowed DAI dips too low. In this case, the smart contracts liquidated the ETH, selling it off to recover the DAI loan and fees. Any remaining ETH after debt repayment is returned to the user.
The bloodbath didn’t stop there. Another large DeFi participant is reportedly on the brink of liquidation after depositing 56,995 wrapped ETH (wETH), worth $91 million, to borrow DAI.
⚠️ A whale who supplied 56,995 $WETH ($90.8M) to borrow $DAI on #Maker is on the verge of liquidation, with a liquidation price of $1,564.58.
— Spot On Chain (@spotonchain) April 7, 2025
Earlier today, another giant whale was already liquidated for 67,569 $ETH ($106M) at $1,650 to repay a $74.49M loan as the price plunged!… pic.twitter.com/1GGSJjmmRI
This wave of liquidations coincides with a broader crypto market downturn. ETH is trading at bear market levels last seen in October 2023, fueled by market uncertainty following U.S. President Donald Trump’s recent tariff announcements. ETH is now down 68% from its all-time high in 2021.
Data from CoinGlass shows that over 320,000 traders were liquidated in the past 24 hours, with total losses nearing $1 billion. ETH positions accounted for the bulk of these liquidations, underlining the high-risk nature of leveraged DeFi strategies during market turbulence.
Also Read: Ethereum Falls 45% in Q1 Amid Investor Uncertainty
As market volatility continues, more DeFi users may face forced liquidations unless they bolster their collateral.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
