The Black Thursday

March 12 marked one of the most notable price crashes in crypto, with the price of bitcoin came all the way down to $3,860 and total lock-up value in DeFi plunged by 72.3% from $889.2M to $246.0M in 12 hours.

With the collapse of cryptocurrency prices and sparked fears, it delivers a devastating blow to DeFi highlighted by MakerDAO’s mounting bad debts related to liquidation. Despite the turmoil, it is a valuable battle and stress test for all DeFi protocols. dForce’s resilience has been proved solid by handling the volatility and market dislocation very well:

Lock-up value dropped down to $11.2M with a speedy recovery up to $18.3M on 19 March and an all-time high record of $21.9M on 25 March.

On March 12, the total liquidations on Lendf.Me amounted to around $1m, after MakerDAO, Compound and dYdX.

Panic amid the market crash induced liquidation constraints on our lending protocol for a short period of time. USDT liquidity dropped to 39.5K on 12 March but soon recovered to $1.35M on 13 March.

Our solid performance during the market turmoil is attributed to the following factors:

Careful selection of collaterals with the best liquidity and quality.

Reliable Oracle service. We aggregate real-time price from a group of exchanges, mediate those price feeds from various sources and publish the mediated one on-chain periodically, which effectively mitigate price-feed failures due to malfunction and network congestion.

Fully open and accessible liquidation process for anyone to participate.

Incentivized liquidity rebalancing mechanism.

Efficient interest rate model for the best interests of both asset supplier and borrower.

Easy-to-use toolkits for account monitor and liquidation monitor.

Please review full performance report here.