MakerDAO Collapse - One Person Made $4.5M, Everyone Else Lost Their ETH

[Deleted member 1333509]

If you haven't heard about what's been happening with MakerDAO then read this.

A single "keeper" (party involved in running the MakerDAO ecosystem) held a monopoly for 3.5hours during the lowest point of today's crash, and this allowed them to buy $4.5M of ETH for $0 + gas fees (would be almost nothing)

https://www.reddit.com/r/ethereum/comments/fht3kn/collapse_of_makerdao_keepers_45m_lost_how_to/

This is no scam, MakerDAO was well respected in the community. What this is is a good example of what happens when token systems are designed with flaws.

Some people lost BIG in the last 12 hours.

Edit: Oh damn, this poor mfkr lost 1713ETH in one hit - their life savings https://www.reddit.com/r/MakerDAO/comments/fhs7kp/just_got_100_liquidated_with_my_1713_eth_cdp_fck/ this is the dark side of the dream of lambos and all that bullshit. The higher the reward, the higher the risk

 

[Deleted member 1313244]

The absolute state of crypto

 

[Deleted member 1333509]

No this isn't a crypto-wide thing, it's specific to the way MakerDAO operates.

They have people called keepers who auction for ETH that is from liquidated system loans, and normally there are lots of them bidding against each other.

Because of the crash, all of the keepers couldn't profitably take part in the system and that left a single keeper to bid $0 and win $4.5M in ETH. That's a big flaw in the system.

The crash happening now is completely normal, there's nothing weird about it. It's in order to shake out weak hands and it was always going to happen.

 

[bartosimpsonio]

Is everything related to Ethereum collapsing? Everyone's dissing ETH on telegram and shit.

 

[Deleted member 1333509]

Is everything related to Ethereum collapsing? Everyone's dissing ETH on telegram and shit.

I had a payment in ETH sent to me yesterday from a client - it took 8 hours to arrive because of congestion and during that 8 hour period you can imagine the volatility. That's a big part of why people are pissed is because of the network failing under a heavy load again.

Also the MakerDAO situation is really bad.. so many people entered into agreements where on paper they could lose 13% maximum in order to stake for a loan. Then even though they were told that they couldn't lose anything more than 13%, they now have empty balances.

 

[Mr Positive]

ETH isn’t dying but right now everyone’s crashing so either buy or simply hold

 

[IamNRE]

99% of all crypto coin investors:

 

[Deleted member 1333509]

99% of all crypto coin investors:

 

[bartosimpsonio]

I had a payment in ETH sent to me yesterday from a client - it took 8 hours to arrive because of congestion and during that 8 hour period you can imagine the volatility. That's a big part of why people are pissed is because of the network failing under a heavy load again.

Also the MakerDAO situation is really bad.. so many people entered into agreements where on paper they could lose 13% maximum in order to stake for a loan. Then even though they were told that they couldn't lose anything more than 13%, they now have empty balances.

Have no idea what makerdao is, will look into it. This sounds bad. Thanks for the infos.

 

[blue_knight]

Why would put all your savings into crypto and then cry out that you loose all?!