Hi HODLers, Hiveans and Lions,
As I was checking the daily news, this unfortunate one caught my eyes. I have looked a bit into it and it seems like it might be close to being handled. Neverthess, $RUNE and Thorchain have been under heavy pressures as the lending service might have some liquidity issues.
Very unfortunate for all the holders but the Thorchain team is taking it seriously and is addressing the cmmunity/market concerns.
- THORChain paused bitcoin (BTC) and ether (ETH) withdrawals on its lending and savers programs to prevent a potential insolvency risk.
- Network node operators proposed and implemented a 90-day pause in early Asian hours on Friday.
- THORChain's cross-chain swaps - its main service - remain unaffected.
Let's remember that THORChain meets its lending obligations by minting RUNE and selling it into liquidity pools. As there were some questions about these liabilities, community and pools have decided to pause withdrawals.
Some community members allege liabilities of nearly $200 million. Of that, some $107 million is contained in liquidity pools, which could be withdrawn or sold by liquidity providers (LPs) or RUNE holders in case of panic.
This is very scary if you are in one of these pools.
As a positive, THORChain's cross-chain swaps is unaffected. Users can still perform swaps and utilize liquidity pools without disruptions.
$RUNE Price
Hopefully, everyt.hing gets settled soon. I might even buy some $RUNE once things are fixed/known
Stay safe,