These unexpected dramatic moves often cause liquidation cascades in the lending market, but they also create unique buying opportunities in the collateral liquidation markets.
In the recent crash on Jan. 8, the lowest price one could buy Ether was $2,833, while the market price of Ether was around $3,000. Similarly, traders could buy bLUNA as low as $58.90 while LUNA’s spot price was around $67.Let’s take a closer look at the strategies for acquiring bETH and bLUNA at a discount during a market crash.
After connecting the Terra wallet to the platform, an investor chooses the asset they would like to bid , then selects the premium to receive. 1. If the investor is not using KUJI to pay for the withdrawal fee, they should always place a premium percentage larger than 1%, as there is a network fee of 2 UST and a 1% commission fee. If using KUJI, the commission is only 0.5%.
The mechanism of evenly distributing liquidation assets among each bidder ensures the fairest allocation to everyone. Ryan Park, co-builder of Anchor Protocol, said in an interview about Orca:
And we will forget about it within a week just like Coinbase hacks. But we talk about Bitfinex and Binance for years, even though they returned all stolen funds to users. But no one cares about that...
Wow. sounds sad. We need to find a way to protect crypto from hackers.
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