Trend Research Faces $862 Million Liquidation Risk Amid Ethereum Selloff
- Trend Research’s leveraged position on Aave peaked at approximately $958 million in borrowed stablecoins.
- The position has decreased from around 601,000 ETH to currently holding 488,172 ETH, a reduction of about 19%.
- As of February 4, Trend deposited another 10,000 ETH (approximately $21.2 million) to Binance for loan repayment.
- The current value of the remaining position is roughly $1.05 billion at an ETH price near $2,150.
- Trend has sold at least a total of about 112,828 ETH since early February to manage liquidation risks.
The unwinding strategy by Trend Research aims to avoid forced liquidations as Ethereum prices decline significantly. The health factor of their position remains closely monitored to prevent crossing below critical thresholds that would trigger larger sell-offs.
With the remaining collateral valued at approximately $1.05 billion, any significant liquidation could impact market dynamics substantially.(Source)
