Altcoin News: DeFi Saver Suspended Service as Ethereum Drops

September 26, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

DeFi Saver, a project that aims to be a one-stop-shop for decentralized finance, has forced some of its processes to freeze due to problems with the Ethereum network.

The Ethereum network, which is still overburdened by a smart contract for lottery games that accounts for 59 percent of the total gas, is thus overburdened to facilitate transactions for DeFi Saver’s Smart Contracts.

In addition to the technological difficulties, DeFi Saver announced that its financial operations were affected by the decline in Ethereum’s market prices. Ethereum has dropped to around $170 after rallying to $220.

DeFi Saver relied on an automated liquidation monitoring process. The measure currently underlines the risk of using Ethereum and the ETH token as the basis for decentralized financial operations.

DeFi Saver provides easier interaction with Compound and Maker DAO, two of the largest decentralized financial operations. DeFi Saver also enables investments in the decentralized exchange and the Fulcrum financing system. Its app and wallet are used to connect to decentralized exchanges, DAI liquidity and tracking multiple portfolios for DeFi and crypto-based loans.

After the market-wide flash crash, DAI has suddenly reduced its offer from around 89 million coins to 80 million. A total of 1.49 million ETH are linked to the Maker DAO Stablecoin program, compared to the two million just a few months ago.

Decentralized finance uses various forms of lending to increase the value of existing assets. Maker intends to include other Altcoins outside Ethereum as collateral and in the future to invest in traditional investments to spread the risk.

Maker is required to add KYC to turn DeFi into a mainstream action. Maker DAO remains one of the top gas consumers, but even with high fees, it can not compete with the lottery game, which consumes blocks and negatively impacts the work of other smart contracts.

Author: Marko Vidrih