So, it turns out that decentralized lending protocol Liquity has become the latest drama queen of the crypto world, with over $17 million in withdrawals after sending out a rather alarming SOS to its users. Apparently, they’ve got a potential threat lurking around, and it’s not just the usual “my cat ate my crypto” excuse. 🐱💔
According to the ever-so-reliable DefiLlama (because who doesn’t trust a llama?), a staggering $17 million has fled the platform in the last 24 hours. Talk about a mass exodus! Liquity’s total value locked has plummeted from a dazzling high of $84.9 million on February 11 to a mere $67.84 million. The stability pools, which were supposed to be the safe havens for wstETH, WETH, and rETH, are now looking more like a sinking ship. 🚢💦
On February 12, Liquity v2 decided to play the hero and issued an urgent warning, telling users to withdraw their funds faster than you can say “liquidity crisis.” Shortly after, Ethereum staking giant Lido jumped on the bandwagon, advising wstETH holders to make a run for it. But, of course, neither Liquity nor Lido felt the need to spill the beans on what exactly the threat was. Classic! 🙄
⚠️ Notice to wstETH Users:
It is recommended to promptly withdraw tokens from Liquity V2 Stability Pool (“Earn”) as a potential issue is being investigated by their team.
For updates, refer to official Liquity channels.
— Lido (@LidoFinance) February 12, 2025
But fear not, dear investors! Liquity’s team has reassured everyone that the protocol is still chugging along like a well-oiled machine and that all funds are as safe as a cat in a sunbeam. They’ve promised that key features like withdrawing collateral, redeeming stablecoins, and staking LQTY are still running smoother than a freshly waxed floor. And yes, BOLD, their stablecoin, is still fully backed. Phew! 😅
Liquity v2, which made its grand debut on January 23, was supposed to be the belle of the ball with its shiny new features for borrowing and lending. Users could now use a variety of assets as collateral, including stETH, rETH, and WETH. Plus, they introduced a flexible interest rate system where borrowers could set rates between 0.5% and 1,000%. Because who doesn’t love a little chaos with their loans? 🎉
Now, with Liquity v2 under investigation, the platform is facing a major test of user trust. While withdrawals have slowed to a trickle, the uncertainty is hanging in the air like a bad smell. Will this lead to more instability, or will it all blow over like last week’s gossip? Liquity’s token price has only been mildly affected, remaining stable for now. Fingers crossed! 🤞
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2025-02-13 14:19