DeFi

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.

WAVES daily chart. Source: CoinCu

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.