Somebody knows why there are so many vault auctions out

there? Was so long time nothing

Because the market dropped today

As @Michael_Schredl said, market dropped today and unfortunatelly many users risk being always near the lower limit of collaterization to maximize the loan the can get. A small hiccup in the market, and it's what you see 😕 Basically a flash sale

this product will put cakedefi in a very bad situation. unnecessarily complex and risky they should just focus on staking and lp

Why should put Cake in a bad position? Anyone is free to use it, no one is forced. And only anyone wanting to push loan limits behind reasonable will stretch a loan to the point in which a mere though of Elon Musk would cause them to get liquidated. This is decentralized finance at it's finest, people are the sole responsible by their finances, and with that, all the good and all the bad. Anyone can win a lot, but also, anyone can lose a lot, it just needs to let greed take the upper edge, or, as I see in the majority of cases, jump into something they do not understand and without even carefully study it, just by looking at the APR. And that is a severe mistake, when you are your sole responsible for your finantial independence, you must double down or even triple down on your efforts to study and understand how things work. Yesterday, there was a user speaking with me that had made a loan, and he doesn't even knew that if he fail the collaterization amount, he would get liquidated and would lose all his collateral! It's not complicated, but more than greed, I am seeing many users jumping into things they dont understand. It's literally like a bank loan, you fail on your garantees, and they will come back for all you got. Anyone taking a good strategy and taking care of it's money and what it represents for their future, will not mess around. I don't stretch my loans to the limit. In fact, with today's drop, my loans are all above 340% from liquidation. It may seem a lot, but it's not need much to still win more than in staking at Cake using loans and still having a good collaterization. I prefer that safety than to try and win everything all at once. I'm in this for the long run, I can win a bit less now if that garantees me a safer future. All this is valid to Defichain also. Do you see this putting Defichain in a bad place? No, but today's market will indeed teach a painfull and unfortunate lesson to many users. And with that, makes them more prepared and attentive to the future

Yea but everyone is aware of this risk and should keep it Monitore frequently when very on liquidation limits 🎈

This is why I use the Defichain Vault Maxi bot to manage my vault and loans. Can run it at 153% safely even in flash crash.

Don't trust that so easily, speaking is easier than doing. Truth is, many users stretch their loan to the max to try and get the maximum rewards possible in the least time and bet on the smallet collaterization possible without reading about things, without knowing the tools the community puts at their disposal such as Dobby, and even when knowing that, trusting that the market will not work against them and that they will be able to react in time. Unfortunatelly, we are seeing some of those consequences in front of our eyes.

been a while since I did an auction, but is there a percent over the bid we still have to pay if we win an auction? 🤔

People get rekt in options market as well. Some are so complex it's difficult to know when those financial products gives profit.

what is Dobby ?

Dobby is a service created by community members that allows you to know the status of your vaults and receive even notifications directly to your telegram account daily or even hourly, about the status of them. Allows you even to configure your alert levels to know when you are below your confort level or reaching liquidation, to allow you to react and increase your collateral or pay part of your loan, so avoiding liquidation. As I said above, this community is amazing, and develop amazing tools to help the cmmunity as a whole. And all the community can benefit if study a bit and get aquainted with all the possibilities that defichain offers. As I said before, defichain (and Cake also) do not want users to lose money, money is won by getting multiplied, not lost, remember that :) So, always do your thorough research into projects, community, tools made available and debelopment pace. Doing so, you will know for sure that Defichain is an amazing investment! 🙂 And to answer your question, below the Dobby website, where you can configure your monitpring account! Enjoy 😉 https://defichain-dobby.com/

Also, you can join the Dobby telegram 😀 https://t.me/defichain_dobby

Yeah I just discovered the project 2 days ago and I'm very impressed by the scale of it, dstocks idea is brillant

u r taking it on a different track. think of CDS that caused 2008. the intention wasn’t bad. and that could have been normal business. but greed, stupidity, and inherent complexity that masks the risks for common folks resulted in the 2008 crash. cake defi is playing in territory that can be characterized by similar attributes. it’s not cake defi. it’s the nature of the beast they are dealing with and letting their users play with

that’s the point. think of exotic derivatives given in the had of folks who have no background, experience or education in dealing with that. on top, add crazy interest rates. recipe for a catastrophe

Basically: "Don't understand it? Don't use it."

What risk? 😂😂😂 dude you have to put up 200% collateralizatiztion

Exactly 😀