#YiHe:ProofOfReserves:10TokensAt100%Backing The hackers are now in a bind; greed has undone what they amassed.
Focus here for a moment…
The hacker knows that holding onto his USDT would allow Tether to freeze his funds, so he deposited it as collateral in the decentralized lending protocol Aave and borrowed Ethereum against it. In other words, he moved the funds into smart contracts that are difficult to freeze.
As a result of borrowing such a huge amount, the indicator next to the wallet (health rate) dropped to 1.06!
Forced liquidation happens at 1.
Now, since his debt is denominated in ETH and his collateral is a stablecoin (USDT), any rise in Ethereum’s price means the debt’s value increases and brings it closer to the liquidation threshold.
That means if Ethereum rises by just 6%, the automated liquidation bots will step in immediately,
seize the USDT collateral to repay the debt, and collect their fee for free% $btc
Focus here for a moment…
The hacker knows that holding onto his USDT would allow Tether to freeze his funds, so he deposited it as collateral in the decentralized lending protocol Aave and borrowed Ethereum against it. In other words, he moved the funds into smart contracts that are difficult to freeze.
As a result of borrowing such a huge amount, the indicator next to the wallet (health rate) dropped to 1.06!
Forced liquidation happens at 1.
Now, since his debt is denominated in ETH and his collateral is a stablecoin (USDT), any rise in Ethereum’s price means the debt’s value increases and brings it closer to the liquidation threshold.
That means if Ethereum rises by just 6%, the automated liquidation bots will step in immediately,
seize the USDT collateral to repay the debt, and collect their fee for free% $btc