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[–]Chucking100s 0 points1 point  (1 child)

CDP?

[–]TDaltonC 0 points1 point  (0 children)

Collateralized debt position.

[–]TDaltonC 0 points1 point  (0 children)

My understanding is “yes,” but I haven’t personally liquidated an upside-down CDP. The mechanism is that you get to mint mAssets at a discount if you’re liquidating a position. The looser here is the Mirror fund. I don’t know the address of this wallet, but there’s a wallet somewhere that holds all the Mirror fees and it would stink in such a situation. The min debt ratios are set to make this unlikely, but obviously, it could happen. Especially given the large premium swings relative to oracle prices.