[ppf]

Traded? You mean loaned. That was always the wording that was used to promote DAI, whatever the underlying transaction might be.

[vinniejames]

Users didft "loan" their lost ETH, they traded the ETH in as collateral and took out a loan in DAI.

This collateral trade was made with full awareness that if the loan became under collateralized the ETH would be liquidated and sold at auction