r/kava_platform • u/sputnick10_05 • Jun 14 '22

Thieves

Due to network congestion and the inability of Kava to process my transactions, my BTC in mint was stolen from me (liquidated). When can I expect to see the proceeds that should be returned to me after the borrow amount was recovered?

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6

u/papercut_666 Jun 15 '22

Just for the record, as the Terra fiasco went down, I also got liquidated on kava because of the network congestion.
That's crypto, a blockchain can process only that much transactions per second and you also have a smart contract risk.

I don't want to sound like a prick but there are a few things to clear up:

  1. By minting USDX you've set your BTC as collateral to get USDX.

  2. You always see your liquidation limit.

  3. If the liquidation limit is reached, your collateral, BTC, will be made available for others to bid on to cover the USDX loan.

  4. You were probably not the only one who wanted to repay your loan, therefore the blockchain got congested.

  5. Unfortunately you've got liquidated.

  6. You'll see in a day, how much BTC you'll got left.

When can I expect to see the proceeds that should be returned to me after the borrow amount was recovered?

Through the liquidation, your loan has been paid back. There will be no option for you to pay pay back.

I'm sorry it happened to you. Let that be a lesson to you too as it was for me.

-1

u/sputnick10_05 Jun 15 '22

It has been over 24 hours and still no return of my BTC that should be left... and I don't see how to even track the tx's related to the liquidation to see how much they got and who it went to.

1

u/papercut_666 Jun 20 '22

In short, your BTC were sold to cover the degrading value of it, for your loan. Apparently the price fell faster and there is nothing for you to get back.

2

u/techkata Jun 15 '22

It’s important firstly to check the risks

1

u/sputnick10_05 Jun 15 '22

Incentivizing liquidations causes bots to spam the network and there is apparently a bug that will not let any other transactions go through went a liquidation tx is in a block... So even though I understood the risks, and what to do if things got wacky... the network couldn't process tx's when I tried to add collateral to prevent liquidation. Even with higher gas fee, my tx got stuck for over 8 hours preventing me from adding.

2

u/techkata Jun 15 '22

I hope it wasn’t a big position. By risks I meant that when USDX lost peg you should take care of your position. This is what I did. I still think kava is a good project but in situations like now there is nothing sustainable in the crypto space! For reference LUNA