Thorchain suspends the network to process debts of $ 200 million

On January 24, Thorchain announced via X that it stopped its network due to excessive debt and taking advantage of the problems that affect its ecological system. The platform owes about $ 200 million in the debts of the ecosystem.

In Defi, the debts of the ecological system occur when Blockchain condemns more symbols than it carries Thornshene The current situation. This often results from excessive promises or mismanagement, which leads to financial imbalances.

On the other hand, the dominant risks come when users use their encryption assets as a guarantee of borrowing to improve their positions. Delivered risks can increase profits but also come with enormous losses if the market is short, which leads to filtering.

according to BlockbeatsThorchain owns $ 97 million in borrowing and $ 102 million in depositors and artificial assets. This financial defect pushed Blockchain to the verge of bankruptcy.

What does Thorchin do to solve the problem?

These risks, in turn, affected the original symbol of Rawwal Thorchin (Ron) The distinctive symbol, which led to the fluctuation of prices, as the distinctive symbol decreased more than 40 % in the past 24 hours, as of January 24. This situation also led to a loss of confidence in the protocol, and Thursin is currently voting on the restructuring plan.

This restructuring plan will help install the system and avoid more risks on the ecosystem. According to the Thorchain Core investor, TCB was highlighted, risky and leveled features such as Thorfi as a major reason for instability and later removed from Blockchain.

In addition, the restructuring plan includes efforts to restore user confidence. As of now, integration with wallets such as Portfolio confidence and Coinbase They allow users to contact Thorchain, and liquidity suppliers will guarantee liquidity, helping to return to his feet.

DEFI lending risks

While many earn within the encryption community Negative income By lending Defi, it is not free of risk. In March 2020, Makerdao went to the debts of the ecosystem worth $ 6.65 million. The platform had to heal and sell MKR codes to cover 4.5 million dollars As part of the debt payment strategy.

Disbeded features such as many influences can be shaken by their stability protocols, emphasizing the need for simplified designs. Moreover, effective risk management systems should also be to avoid ecosystem debts and protect user money.