@diogenes I am a liquidator of lending protocols and I saw all of this live. Quicknode, debank were down. I saw liquidations where the collateral seize was twice the value of the repaid loan due to discrepancy between oracle prices and on chain prices. In my personal experience, it
@0xMachinis That is nuts, could this not be avoided by having your own node? J curious what infra looks like for this stuff, is out of my domain tbh
@diogenes @eli5_defi you think this was pure macro reaction or someone clearly front-ran that tariff news?
@vicenzo29 @eli5_defi I mean timing on that size is suspect
@diogenes Good article man actually learned something new for myself. I think USDe was 38% not 48% decline.
@abr0xac You're correct, was trying to get this out v fast and missed that until an hour after, normally i proof read but had no time :/
@diogenes This effectively covered everything, the main Q is there any signs of contagion? MMs blow up, etc. I mean why didn't MMs step in for arbitrage between CEXs & perp vs spot? also there were great deals for stinky bids, but MMs felt non-existent
@theamiralek Withdrawals went down also $20B in sells in 1HR has never really been seen
@diogenes why @DeBankDeFi not working blocked sending transaction? someone uses it as a price oracle?
@feulf @DeBankDeFi Rabby / Debank are same co So when Debank couldn't pull data was functionally bc Rabby also couldn't
@diogenes The real question is: during the free fall, which market makers pulled liquidity and which maintained their contractual positions?
@kentlinyy All of them pulled, I heard MM websockets were closed
@MaxBiocca Gracias capo
@diogenes does ADL only affect shorts in the scenario of price go down? kinda sus that Lighter didnt have ADL and when it went back on, it said my longs got ADL 🤔
@ricematcha It can happen both ways Fundamentally reason ADL gets applied is the book cannot fill liquidations ADL being applied is agnostic to whether those liquidations are on shorts or longs
@diogenes Great article, answered a lot of questions I had. Wonder what evaporated the market making on some of these alts though. Felt reminiscent of some of the 2021 flash crashes but never saw prices literally go to 0 on some of these alts like Kaspa and Atom.
@KonradsKrypto Some MMs were blown up But was mostly fact that there were so many liquidation orders that j ate the whole book
@diogenes This is a must read for everyone Incredibly detailed and very interesting read Kudos to you 👏🏾
@0xCeefu Thanks man :)
@diogenes It should be noted that Lighter remained online during the actual crisis and went offline at ~10pm eastern later that night.
@diogenes Great summary and insights. What was evident to me is liquidity disappeared in an instant. Price wicked down, but couldn't actually be filled -40%.
@samuelmandrew Yeah when ADL gets used basically mrkt becomes RFQ