Sai, formerly Dai has seen $1.2 million in liquidations today with a supply of $45 million. A few months ago, Sai’s supply was around $100 million before the release of the new Multi-Collateral Dai, which is now called Dai. Sai is created by collateralizing Ethereum worth 150% of the Sai a user is taking out.
LoanScan is a great website to look at statistics in the DeFi space. We found the amount of Sai liquidations today through their “Collateral Liquidated.”
As you can see, this isn’t the biggest spike in liquidations in the past month. Around November 20th, the price of Ethereum dropped around twice what it has in the past few days and liquidated $2 million worth of Sai. November 18th is when Multi-Collateral Dai released, so that could have had an impact as well.
The minimum collateral of Ethereum to Dai in Maker’s system should be around 150%. Maker’s Collateral ratio is getting eerily close to that point having dropped from 315% to 235% within the past month. Reaching around 115% would essentially destroy the system.
On the same token, Maker doesn’t really care if Sai fails because they are planning to call on an emergency shutdown anyways. Maker is proud of their new innovations in Multi-Collateral Dai and would like everyone to manually convert their Sai tokens to Dai before the emergency shutdown begins.
Because of Ethereum’s price volatility, users that have Sai CDPs have been dumping more Eth into their contract in order to avoid liquidation. Today, about $8 million USD in ETH was added to Maker’s Sai contracts according to LoanScan.
I think everyone in the industry is hoping that prices don’t fall for too much longer. Bitcoin is getting very close to the $6k support levels that price bounced off of for around 10 months in 2018. Pushing below that support once again could be bad for Bitcoin and the rest of the industry on a macro scale.