Close Menu
Global News HQ
    What's Hot

    Asus’s new BTF GPUs can now be used in standard systems courtesy of a detachable 1000W power connector — New 5090 and RTX 5070 Ti models have a dual personality

    June 28, 2025

    Asus’s new BTF GPUs can now be used in standard systems courtesy of a detachable 1000W power connector — New 5090 and RTX 5070 Ti models have a dual personality

    June 28, 2025

    The 5 Best Stocks to Buy With $5,000 | The Motley Fool

    June 28, 2025
    Recent Posts
    • Asus’s new BTF GPUs can now be used in standard systems courtesy of a detachable 1000W power connector — New 5090 and RTX 5070 Ti models have a dual personality
    • Asus’s new BTF GPUs can now be used in standard systems courtesy of a detachable 1000W power connector — New 5090 and RTX 5070 Ti models have a dual personality
    • The 5 Best Stocks to Buy With $5,000 | The Motley Fool
    • Kenzo Spring 2026 Menswear Collection
    • XRP spikes 3% after Garlinghouse says Ripple dropping SEC cross-appeal
    Facebook X (Twitter) Instagram YouTube TikTok
    Trending
    • Asus’s new BTF GPUs can now be used in standard systems courtesy of a detachable 1000W power connector — New 5090 and RTX 5070 Ti models have a dual personality
    • Asus’s new BTF GPUs can now be used in standard systems courtesy of a detachable 1000W power connector — New 5090 and RTX 5070 Ti models have a dual personality
    • The 5 Best Stocks to Buy With $5,000 | The Motley Fool
    • Kenzo Spring 2026 Menswear Collection
    • XRP spikes 3% after Garlinghouse says Ripple dropping SEC cross-appeal
    • 10 Outdated Travel Items It’s Time to Toss—and What to Replace Them With, From $13
    • PwC to cut 175 junior auditors amid slowdown
    • Are You Approachable at Work? Tips for Building Better Connections
    Global News HQ
    • Technology & Gadgets
    • Travel & Tourism (Luxury)
    • Health & Wellness (Specialized)
    • Home Improvement & Remodeling
    • Luxury Goods & Services
    • Home
    • Finance & Investment
    • Insurance
    • Legal
    • Real Estate
    • More
      • Cryptocurrency & Blockchain
      • E-commerce & Retail
      • Business & Entrepreneurship
      • Automotive (Car Deals & Maintenance)
    Global News HQ
    Home - Cryptocurrency & Blockchain - THORChain urgently drops ‘risky’ DeFi features amid $199 million debt
    Cryptocurrency & Blockchain

    THORChain urgently drops ‘risky’ DeFi features amid $199 million debt

    Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp VKontakte Email
    THORChain urgently drops ‘risky’ DeFi features amid 9 million debt
    Share
    Facebook Twitter LinkedIn Pinterest Email



    THORChain has suspended Bitcoin and Ethereum withdrawals within its lending and savings programs after reports of a $199 million liability surfaced.

    On Jan. 24, THORChain founder John-Paul Thorbjornsen disclosed that validator node activities for THORFi services have been paused. This suspension temporarily halts debt repayments and synthetic asset redemptions while validators deliberate on a restructuring plan.

    Despite these disruptions, trading and swapping functions remain operational.

    The problem

    On Jan. 24, TCB, a prominent investor and protocol node runner, revealed that THORChain’s debts include $97 million in loans and $102 million in savers and synthetic assets.

    Meanwhile, the protocol holds $107 million in liquidity, which liquidity providers can withdraw at any time. This imbalance poses a significant risk to the platform’s stability.

    To address this situation, TCB highlighted two possible scenarios where a small percentage of creditors withdraw their funds rapidly, risking a collapse, or the protocol pauses operations to restructure its debts. The latter option aims to ensure the platform’s long-term viability.

    ShapeShift’s CEO Erik Voorhees further explained that the lending and savings programs were experimental features that introduced significant risks.

    According to him:

    “Lending and Savers were two additions to Thorchain which were experimental. At this point, it’s clear these designs failed, they were too risky. While these functions were not core to the protocol, their risk has been a dismal overhang for a while–nobody was sure how long it would take for users to clear out their positions.”

    Another contributor, Proof of Steve, stated that excessive reliance on the RUNE, the protocol’s native token, to cover risks made the platform vulnerable to external threats. He supported the suspension, noting it gives the community time to devise a sustainable solution.

    ThorChain profitability

    Thorbjornsen assured users that the platform generates sufficient revenue to address its liabilities after restructuring. However, he warned RUNE that it could experience further price drops during this period.

    Proof of Steve also shared an update showing that the protocol revenue has remained stable, with a recent uptick in unique daily depositors.

    TCB also pointed out that THORChain generated over $30 million in fees last year and is on track for higher revenue this year.

    THORChain TVL and RUNE decline

    Since the announcement, RUNE’s price has dropped by nearly 30%, hitting a two-year low of $1.9 before recovering slightly to $2.4 at the time of writing.

    TCB attributed the decline to speculative short sellers betting on further instability. He reassured the community that the protocol had turned off the features fueling the downward cycle.

    He wrote:

    “The majority of the selling volume is perp short sellers speculating it’s going into a reflective negative cycle. The features that could send it in a downward reflective spiral are disabled and will be eliminated from the protocol, it’s the only way.”

    Meanwhile, the total value locked (TVL) on THORChain has dropped by over $100 million since Jan. 7, standing at $297 million, according to DeFiLlama data.

    Mentioned in this article
    Latest Alpha Market Report



    Source link

    RUNE Thorchain
    Share. Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email
    Previous ArticleDriving the 2025 Mercedes-Benz CLE Coupe – Kelley Blue Book
    Next Article IQUW promotes two to head portfolio solutions

    Related Posts

    XRP spikes 3% after Garlinghouse says Ripple dropping SEC cross-appeal

    June 28, 2025

    Gemini launches tokenized US stock trading in EU starting with MSTR

    June 28, 2025

    Ripple drops cross-appeal as SEC set to follow, closing XRP case

    June 28, 2025

    Public Keys: Copycat Lawsuits for Bitcoin Giant Strategy, Coinbase Hits All-Time High – Decrypt

    June 28, 2025
    Leave A Reply Cancel Reply

    ads
    Don't Miss
    Technology & Gadgets
    4 Mins Read

    Asus’s new BTF GPUs can now be used in standard systems courtesy of a detachable 1000W power connector — New 5090 and RTX 5070 Ti models have a dual personality

    Asus has announced its newest GeForce RTX 5090 and GeForce RTX 5070 Ti under the…

    Asus’s new BTF GPUs can now be used in standard systems courtesy of a detachable 1000W power connector — New 5090 and RTX 5070 Ti models have a dual personality

    June 28, 2025

    The 5 Best Stocks to Buy With $5,000 | The Motley Fool

    June 28, 2025

    Kenzo Spring 2026 Menswear Collection

    June 28, 2025
    Top
    Technology & Gadgets
    4 Mins Read

    Asus’s new BTF GPUs can now be used in standard systems courtesy of a detachable 1000W power connector — New 5090 and RTX 5070 Ti models have a dual personality

    Asus has announced its newest GeForce RTX 5090 and GeForce RTX 5070 Ti under the…

    Asus’s new BTF GPUs can now be used in standard systems courtesy of a detachable 1000W power connector — New 5090 and RTX 5070 Ti models have a dual personality

    June 28, 2025

    The 5 Best Stocks to Buy With $5,000 | The Motley Fool

    June 28, 2025
    Our Picks
    Technology & Gadgets
    4 Mins Read

    Asus’s new BTF GPUs can now be used in standard systems courtesy of a detachable 1000W power connector — New 5090 and RTX 5070 Ti models have a dual personality

    Asus has announced its newest GeForce RTX 5090 and GeForce RTX 5070 Ti under the…

    Technology & Gadgets
    4 Mins Read

    Asus’s new BTF GPUs can now be used in standard systems courtesy of a detachable 1000W power connector — New 5090 and RTX 5070 Ti models have a dual personality

    Asus has announced its newest GeForce RTX 5090 and GeForce RTX 5070 Ti under the…

    Pages
    • About Us
    • Contact Us
    • Disclaimer
    • Homepage
    • Privacy Policy
    Facebook X (Twitter) Instagram YouTube TikTok
    • Home
    © 2025 Global News HQ .

    Type above and press Enter to search. Press Esc to cancel.

    Go to mobile version