I love Pudgy but the same thing I told everyone was the problem over a year ago on the run up might be worse now.
Most people pumped the Pudgy floor by sweeping on loans. Then they took the money from loans on top of those and bought $PENGU. The issue is these loans were in ETH and ETH was $1500-2000. So now that they are getting called the price to pay these back in most cases is over 200% of what they borrowed. Some got $PENGU gains to offset it and some don’t. It’s a zero sum game here but paying them back now gets much riskier to longevity.
Not sure if someone comes in and saves it like last time but would assume we see more dips here from Pudgies and from $PENGU to solve this.
Best project in the space but like last time when it happened… this is just math… except this time it’s a deeper hole.
150 that got called of 631 and as the 150 expire expect another 200+ triggered.
Great for those giving loans as they got high APRs to collect AND most got a 200-300% bonus on ETH value in USD. Good week to be the banks
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