Today in DeFi - Compound Liquidations, Yearn x Cover, and More...

Compound Liquidations

🤖 Leshner @rleshner

This morning, $DAI prices on Coinbase Pro escalated rapidly, leading to the liquidation (repayment) of 85.2M DAI borrowed from Compound. 124 of 225,793 users were impacted; there are no under-collateralized accounts, and all markets are healthy.

comp.xyzDAI Liquidation EventDAI Liquidation Event The Compound protocol uses Coinbase Oracle for account liquidity calculations, anchored to within 20% of the Uniswap time-weighted average price. Any Ethereum address can post the signed/reported price on-chain, which allows for a permissionless and autonomous price feed that …

On Thanksgiving Day, as markets dumped heavily, DAI loan repayers drove the price of the stablecoin up greatly, up to $1.31USD on Coinbase. Many DAI borrowers on Compound Finance got liquidated, since Compoud uses Coinbase as a price Oracle.

An active discussion is happening to address liquidated users.

My personal recommendation: if you are borrowing DAI, do it through MakerDAO.

In MakerDAO, the collateral ratio is defined by ETHUSD oracles. DAI does not have its own separate price, so peg breaks cannot liquidate you. In addition, there is a 1hr delay in the oracle price taking effect on liquidations, giving you time to adjust your positon in the case of a market crash. Finally, MakerDAO has tight integration with DeFiSaver, which has automated loan adjustment facilities which can help prevent liquidations.

Yearn x COVER

Andre Cronje @AndreCronjeTech

Yearn & Cover merger

Yearn is on a merger spree. After Pickle and Cream, Yearn is now merging with COVER. COVER is a permissionless insurance protocol, and as described in the article, this merger benefits both protocols:

• Cover provides a wider range of coverage and accepts more types of collateral.

• Cover products like perpetual coverage will get an expanded addressable market.

• Cover expands into a new cover money market, making the CLAIM token a collateral & borrowable asset.

• Yearn gets coverage for vaults and can offer users a reduced risk product.

• Yearn can focus on vaults and lending, with yInsure (and yNFTs) being taken over by Armor.

• YFI cover writers earn increased fees from YFI coverage underwritten.

Read more in the Medium article.

Yearn PowerPool

Power Pool @powerpoolcvp

🎱 The Supernova is born: first-ever $YFI integration in #PowerPool meta-governance protocol! We welcome the amazing $YFI community to the new era of decentalizied governance. medium.com/powerpool/powe… 🎱 Let’s show how to govern the governance! @iearnfinance $CVP #MetaGov

medium.comPowerPool x YFI ecosystem partnershipWe announce PowerPool x YFI ecosystem partnership and integration of YFI governance into PowerPool meta-governance system PowerPool integrates PowerIndex with YFI governance system PowerIndex is a…

You thought that was it for Yearn partnerships today, didn’t you? Wrong.

PowerPool is integrating YFI into its PowerIndex. This provides PowerIndex owners exposure to YFI, and it also increases YFI Governance participation (YFI in the index is put in governance contract).

yGift

tracheopteryx.eth @tracheopteryx

𝕒𝕟𝕟𝕠𝕦𝕟𝕔𝕚𝕟𝕘~ yGift.to A new @iearnfinance platform for giving gifts, grants, and gratitude. 🦃 For this holiday season, send the gift of crypto. 🎄

Yearn Finance has created yGift, a site that allows sending NFTs, with or without yUSD (interest-bearing stablecoin) attached, to a participant. Originally an internal tool, it is now open to the public.

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Disclaimer: Projects or tokens mentioned in this newsletter are often experimental or unaudited. Do your own diligence before using or buying anything mentioned