ZRX-backed Loan On Aave V2 Gets Closer To Liquidation
TLDR A $2.5M loan on Aave v2 backed by ZRX is steadily approaching liquidation. But with ZRX liquidity extremely scarce on-chain, it appears unlikely anyone would want to liquidate the position, threatening to leave the protocol with bad debt.
SO WHAT Aave will sell AAVE tokens users have staked to its safety module in the event of bad debt. Aave moved to freeze its illiquid markets (including ZRX) after incurring $1.6M in bad debt last year.
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ZRX-backed Loan On Aave V2 Gets Closer To Liquidation
TLDR A $2.5M loan on Aave v2 backed by ZRX is steadily approaching liquidation. But with ZRX liquidity extremely scarce on-chain, it appears unlikely anyone would want to liquidate the position, threatening to leave the protocol with bad debt.
SO WHAT Aave will sell AAVE tokens users have staked to its safety module in the event of bad debt. Aave moved to freeze its illiquid markets (including ZRX) after incurring $1.6M in bad debt last year.