Lido Staked ETH (ezETH) De-pegs, Liquidating Credit Accounts on DeFi Protocols

IconCrypto News Terminal24 Apr, 2024

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Lido Staked ETH (ezETH) De-pegs, Liquidating Credit Accounts on DeFi Protocols

Lido Staked ETH (ezETH) price briefly plummeted to $2,728 today, detaching from the underlying ETH value. This triggered the liquidation of several Credit Accounts on DeFi platforms. 0xmikko, Gearbox protocol founder, stated that 115 credit accounts were liquidated due to the ezETH depeg, resulting in the sale of 10650 ezETH on Balancer. Gearbox internal reserves covered the liquidation losses of 25.77 ETH, eliminating the need for further action. ezETH is a liquid staking token that enables users to stake ETH or LST (Liquid Staking Tokens) for seETH in return. Previously on [date], Lido Staked ETH (ezETH) price dipped to $2,728, causing a de-peg from ETH and the liquidation of Credit Accounts positions on DeFi protocols.

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