Sky Protocol’s Big ETH Positions Are Hanging by a Thread
The post Sky Protocol’s Big ETH Positions Are Hanging by a Thread appeared on BitcoinEthereumNews.com.
Sky Protocol holds two large ETH positions near liquidation, protected by the Oracle Security Module’s one-hour delay. USDS stablecoin from Sky surpasses rivals as multichain expansion and OpenOcean integration strengthen its ecosystem. Sky Protocol—formerly known as MakerDAO—is in a bit of a nervous situation. Two of its massive Ethereum (ETH) positions are currently on the brink of liquidation. According to DefiLlama, the first sits at $1,786, worth about $115 million. The second sits a little higher, at $1,805, worth about $109 million. Should ETH drop below these benchmarks, the consequences could resemble a domino effect: a single misstep could bring down the entire stack. When Seconds Matter: Sky’s Safety System in Action However, Sky Protocol isn’t without its own safety net. It has a key feature called the Oracle Security Module (OSM). This mechanism works like a safety belt on a roller coaster—it keeps sudden pressure from crashing. By averaging prices from multiple sources and adding a one-hour delay before triggering a liquidation, OSM gives it some breathing room when the market is swinging wildly. While it may not be a perfect solution, it provides sufficient time for contemplation before the situation deteriorates. One of those two positions was already close to being derailed on March 11. Luckily, its owner was quick to respond. They added 2,000 ETH as additional collateral and repaid part of the loan in the form of DAI stablecoin worth $1.5 million. Meanwhile, the second position has remained stagnant for five months, lacking any additional collateral or movement. USDS Overtakes Rivals With Smart Moves and Bold Expansion On the other hand, Sky Protocol is also making history in another sector, stablecoins. Their stablecoin, USDS, just surpassed Ethena’s USDe supply this March. Earlier in February, CNF reported that USDS’ supply had surpassed 9 billion, even overtaking DAI…
Filed under: News - @ March 30, 2025 8:25 am