Dai
$1.02 0%
DAI · 17w

Who pays the gas for the bite() function call? Or in other words can you prevent liquidation by creating millions of tiny cdps?

From my understanding the collateral is put at risk if you take out too much dai or the price falls to deep. In that case someone can call the bite function and get a nice cut of the cake for keeping the system healthy. However if an actor opens many many cdps which are tiny in amount nobody seems to close the faulty ones. I have seen so far a few faulty cdps which were tiny so I assume the bonus would not cover the cost. Would this mean that you can stay undercollateralized and/or damage the system if you make sure collectors would be cost negative to enforce liquidation?
Go to self.MakerDAO
Recent news