Waves Proposes Restarting Vires.Finance Lending Protocol

The Waves community has voted to restart the Vires.Finance lending protocol and plans to repay the lost $500 million to users.

The Waves blockchain community has proposed to restart the Vires.Finance lending protocol in a decentralized manner. Voting ended on July 29, with more than a quarter of the votes in favor of the plan. After the “DeFi Revival Master Plan” is approved, the Waves community will find a way to recover the lost funds.

In April, Vires.Finance faced a severe crisis, even classified as a “Ponzi project.” Derived from Neutrino (USDN), a stablecoin on Waves, dropped from the $1 peg even before the Terra ecosystem collapsed.

Since then, the platform ran out of liquidity, blocked users from withdrawing, and $500 million was wiped off the protocol.

Waves founder Sasha Ivanov transferred $500 million of bad debt to her wallet, announcing it would liquidate USDN and pay off the debt to investors.

To fix the situation, the Vires team submitted a proposal that gives users two options with balances above $250,000 on the platform. The first option is to exchange their positions for USDN, with a one-year vesting period and a 5% liquidation bonus. The second option is to remain in USD Coin (USDC) and Tether (USDT) with 0% APY, which Ivanov will repay without any guarantee on the payment time frame.

However, there were still some mixed opinions when this proposal was released. One user called this a “pure fraud.” Another claimed the community was “protecting thieves” instead of constructively arguing for the proposal.

Currently, USDN is still around the $0.99 mark, WAVES and VIRES are trading at $5,769 and $22.87 respectively.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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