Trader Loses $500K After Illiquid deUSD Market Triggers VWAP Spike

Trader Loses $500K After Illiquid deUSD Market Triggers VWAP Spike

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 pushed the price of deUSD above its intended $1 peg — a spike that was sufficient to trigger a liquidation on Euler. Chainlink’s price oracle, w…