A cryptocurrency trader was liquidated on Euler, a decentralized lending platform on Avalanche, due to a sudden surge in the price of deUSD, resulting in a loss of over 500 thousand USD. The incident involved a series of large trades between the synthetic dollar deUSD issued by Elixir Network and USDT in the Curve pool, causing a brief price fluctuation.

AVAX

DEUSD

<p><img>A crypto trader lost more than $500,000 after being liquidated on decentralized lending platform Euler on Avalanche due to a sudden spike in the price of deUSD, a synthetic dollar issued by the Elixir Network. The incident involved a series of large trades on the deUSD/USDT Curve pool, which temporarily ...</p>
<p>The post <a href="https://unchainedcrypto.com/trader-loses-500k-after-illiquid-deusd-market-triggers-vwap-spike/">Trader Loses $500K After Illiquid deUSD Market Triggers VWAP Spike</a> appeared first on <a href="https://unchainedcrypto.com">Unchained</a>.</p>

Traders incurred losses of 500 thousand USD due to a spike in the VWAP price caused by insufficient liquidity in the deUSD market.