Follow Frank on X.
Two days ago, the atebites X account pointed out that THORChain’s lending service currently has nowhere near enough bitcoin to repay its creditors.
As of the time of the post, the total amount of bitcoin to be repaid to depositors was 1,604, while the lending pool only had 592 bitcoin in it.
We need to be raising awareness on just how bad of a shape Thorchain lending is right now, posing a potential risk to the protocol itself.
As it stands, at current mark to market rates for RUNE, complete loan closure will mint 24 million RUNE.
1,604 in BTC collateral, 18,258… pic.twitter.com/OykZbMQCdx
— atebites (@ate_bites) January 8, 2025
As Lava founder Shehzan Maredia explained in a post on X, when you borrow on THORChain, they sell the bitcoin you put up as collateral for their own token, RUNE. When you repay your loan, they sell the RUNE for bitcoin to give you back your collateral.
I predicted the Thorchain collapse in 2023 when
We współpracy z: https://bitcoinmagazine.com/takes/why-you-should-redeem-your-bitcoin-from-thorchains-lending-service
