The Gauntlet proposal suggests an emergency pause on the USDC, USDS, and USDT lending markets on Ethereum.

On November 5, the DeFi research and risk management company Gauntlet proposed on the Compound forum of the Ethereum lending protocol to implement a temporary emergency pause on the following independent lending Comet markets in Compound v3: USDC on Ethereum, USDS on Ethereum, and USDT on Ethereum. Gauntlet stated that it observed liquidity crises for both deUSD and sdeUSD under Elixir, both of which are listed as collateral on Ethereum's USDC, USDS, and USDT. Gauntlet has suggested updating the risk parameters (Tally), which have not yet been approved by the governance committee. Before the proposal is approved, Gauntlet recommends pausing the withdrawal of affected tokens. This means that the USDS, USDC, and USDT tokens on Ethereum in Compound v3 will not be able to establish new lending positions or withdraw liquidity. Yesterday, Stream Finance disclosed that its fund assets suffered a loss of $93 million, of which Elixir bore an exposure of $68 million, leading to a liquidity crisis for deUSD and sdeUSD under Elixir.

COMP-3.23%
USDC-0.02%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)