Vires Finance Hack

Vires Finance has experienced a liquidity crunch due to overextended loans, resulting in a bad debt of over 500,000,000 $USD

Vires Finance is a decentralized money market protocol built on top of the Waves blockchain, which provides lending and borrowing opportunities. $USDN is an algorithmic stablecoin of the project, that had over 1,260,000,000 $USD in TVL at that moment.

On 3rd April 2022, the platform experienced a liquidity crunch, which prompted Waves founder Sasha Ivanov to step in and take on the bad debt of about 500,000,000 $USD. Ivanov has since pledged to slowly liquidate the debt without causing the coin to depeg. To manage the debt, Vires has limited withdrawals to $1,000 $USD per user per day. The company sporadically adds liquidity to Vires, which is quickly withdrawn. $USDN has managed to restore its $1 peg for a brief period and then lost a peg multiple times. In the end, the token lost its peg permanently and was rebranded, and now it is not stablecoin anymore. The new token was named Neutrino Index and has a $XTN symbol, and it has only 112,000,000 $USD as a TVL

XTN address:

https://new.wavesexplorer.com/assets/DG2xFkPdDwKUoBkzGAhQtLpSGzfXLiCYPEzeKH2Ad24p