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Eric Conner @econoar
, 6 tweets, 3 min read Read on Twitter
Curious why the @compoundfinance Dai rate is so high? Someone is trying to protect a massive @MakerDAO CDP. Here's how...

1. Supply 724,000 REP as collateral
2. Borrow all the Dai available.
3. Send Dai to @ParadexIO and buy ETH.
4. Lock ETH in CDP to protect.

Proof below...
Here we can see the address supplying all the REP (7% of all in circulation) and borrowing ETH and DAI. Thanks to for the data.
All the borrowed Dai comes in here…

And then gets moved here…

At that point, it's used to buy ETH on @ParadexIO
That ETH then ends up on Maker, example here:…

You can see that ties out to a wipe of the same amount (1291) on their CDP
With 88,000 ETH on the line, this user clearly doesn't care about paying 20% APR on their Dai borrow.

Why not flip the REP for ETH and pay that way? My hunch is taxes.
Side note, Decentralized Finance is clearly not private.
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