Market Cap: $2.6669T -1.190%
Volume(24h): $129.9898B 62.650%
  • Market Cap: $2.6669T -1.190%
  • Volume(24h): $129.9898B 62.650%
  • Fear & Greed Index:
  • Market Cap: $2.6669T -1.190%
Cryptos
Topics
Cryptospedia
News
CryptosTopics
Videos
Top News
Cryptos
Topics
Cryptospedia
News
CryptosTopics
Videos
bitcoin
bitcoin

$83571.608249 USD

-1.38%

ethereum
ethereum

$1826.028236 USD

-3.02%

tether
tether

$0.999839 USD

-0.01%

xrp
xrp

$2.053149 USD

-2.48%

bnb
bnb

$601.140115 USD

-0.44%

solana
solana

$120.357332 USD

-3.79%

usd-coin
usd-coin

$0.999833 USD

-0.02%

dogecoin
dogecoin

$0.166175 USD

-3.43%

cardano
cardano

$0.652521 USD

-3.00%

tron
tron

$0.236809 USD

-0.59%

toncoin
toncoin

$3.785339 USD

-5.02%

chainlink
chainlink

$13.253231 USD

-3.91%

unus-sed-leo
unus-sed-leo

$9.397427 USD

-0.19%

stellar
stellar

$0.266444 USD

-1.00%

sui
sui

$2.409007 USD

1.15%

Cryptocurrency News Articles

THORChain Halts Operations of Its Lending Service Amid Financial Woes, RUNE Plunges 19.33%

Jan 24, 2025 at 10:19 pm

THORChain, a protocol known for facilitating cross-chain swaps, announced a pause in operations of its THORFi service, which includes savings and lending programs.

THORChain Halts Operations of Its Lending Service Amid Financial Woes, RUNE Plunges 19.33%

THORChain, a decentralized protocol that facilitates cross-chain swaps, has announced a pause in operations of its THORFi service, which includes savings and lending programs.

This decision comes amid financial problems and concerns about THORChain’s ability to handle the debt that has piled up in its lending pools. The native token of THORChain, RUNE, has also seen a sharp decline in the last 24 hours, plunging 19.33% and sparking a crisis within the community.

The THORChain team will now be implementing a 90-day restructuring plan, during which operations, particularly the savings and lending services, will be reviewed and adjusted to minimize risks and ensure the future stability of the protocol. While token swap functionalities will remain active, the suspended services are being analyzed thoroughly due to problems related to Bitcoin reserve management and the issuance of RUNE to cover outstanding debts.

The crux of the THORChain crisis lies in the accumulation of debt in Bitcoin loans issued at a time when prices were significantly lower. This led to the creation of more RUNE to cover the deficits, a strategy that has raised concerns about the long-term sustainability of the system. Without a robust liquidation mechanism, the protocol faces an imminent collapse if users decide to withdraw their funds en masse, a scenario reminiscent of the Terra/Luna collapse in 2022.

Another point of concern is the synthetic assets offered by THORChain, which are backed by liquidity pools that combine original cryptocurrencies with RUNE. This heavy reliance on the native token and its volatility has increased the collateralization risks, raising the possibility of deficits in the reserves.

In response to this situation, the community and validators are exploring proposals to restructure the protocol’s economy. These measures aim to stabilize the system and ensure that it can meet its long-term obligations. John-Paul Thorbjornsen, the founder of THORChain, expressed confidence that the protocol will be able to resolve its debts once the reforms are completed.

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Other articles published on Apr 03, 2025