In all fairness to this proposal and Daniele/team: Daniele tweeted “Just so you know we have been running backstop under price of treasury on liquidations”.
I just checked my Abra and I have my position back again (my liquidation price was $44445 wMEMO or about 20% below backing price), so I’d encourage everyone who was liquidated UNDER the backing price to check again. If everyone got their position back, then I will remove this proposal from the forum, but need confirmation.
I do not think we are getting our liquidation back. This was played on the grey zone. Heck… If they actually return it, I will invest twice of what I lost to show support.
I have read some arguments against and honestly I don’t get it. If your liquidation price was BELOW backing price, you weren’t over- leveraged. You were taking part in the full ecosystem with faith in the Devs. Yes you might have been leveraged, but not excessively. I think we should support those who got liquidated and keep the faith the trust of this project on the upswing.
I did not leverage my position, I had collateral and had a liquidation price of $960 per/MEMO.
As the price became closer and lower toward the backing price, I was not able to complete the transaction on Avax
An order to pay off the debt in time was frozen and I lost all borrowed MIM + 5 MEMO worth of collateral. I think this should paid back in good faith I was still above the backing price and was also liquidated as a result of delays caused using avax to process the transaction… that transaction would have saved me in the region of USD 10k.
There was no such a thing as safe leverage because you can’t guarantee a minimum price will be held, otherwise everyone could safely
Leverage at that liquidation price and we would be printing money out of nothing… while it sounds nice it can’t be done.
Unfortunately is sad for people that lost money as they didn’t properly understand this…
People are afraid that those who got liquidated under backing price and were stop on their transaction due avax/abra u/i issues are go to sell. That can always be address with a locking mechanism. The strenght of Frog nation relies in the number of supporters from all walk of life. If sizeable minority feels betrayed and the cost to make them whole is neglible to the treasury and Abra protocol, then from a businesses perspective it makes sense to take care of those who suffered.
The middle point will be for the treasury to ask for an over-draft fee. Meaning, treasury will charge you an x amount that will benefit current holders and give you your collateral back. I will gladly pay the fee. This is entirely the treasury’s fault… They landed in a position that no matter what they do, they will get 50% investors pissed.
BTW… With my last sentence, I do not think that they will be a “Wen Lambo” investing in Wonderland (unless you invest 1/3 of what a Lambo costs) if they do not sort this one out. If those liquidated are left hanging on a bot technicality, this project just became a second class OHM fork.
Nope, everyone should be responsible for their own decisions. Giving them $ to use the rest of us as exit liquidity isn’t something I’m interested in doing. You choose to use leverage, that’s on you, not me.
Btw I was not using “leverage” on the abracadabra site. I simply borrowed and was liquidated.
Nearly lost 100% of my investment and was in since early November.
Dont do this - THIS is the problem with the world today. No self accountability. Here in the US we are down to 25% of the total population supporting the other 75% - and that 75% is still a victim everyday in their own minds. DO NOT reward bad decisions, it only leads to more bad decisions - and less reward for good decisions. LEARN people, learn the hard way if you have to.
Bailing out leveraged positions is exactly what the government did during the great financial crisis, imho this is not in line with the ethics and morals of what DeFi, free markets and individual responsibilities are about.
Not only it will lead to more leveraged positions in the future and moral hazard but it will be at the expenses of the ones who invested with more responsibility in the project.
Said this I’m sorry for the ones who played their hand wrong.
