On November 26, Abracadabra posted an “Emergency Proposal” to Sushi’s governance forum, requesting that the Sushi team raise interest rates on two Bento vault “cauldrons” containing $10 million in RenCrv and ETH tokens.
“It has come to our attention that two collateral positions on Sushi’s Bentobox infrastructure are at risk,” according to the post. “A faulty oracle poses a threat to users who have open positions in the yvcrvstETH cauldrons.” For RenCrv, the recent developments regarding the deprecation of Ren Bridge v1 leave us unsure of the best way forward with this type of collateral.
Because Abracadabra’s lending infrastructure is built on Sushi‘s Bentobox protocol, any changes to interest rates must be approved by the multi-signature contract that governs Bentobox.
“The Abracadabra design has no power to forcefully close an open position for any reason,” according to the post. “However, we can raise the interest rate to incentivize users to do so, which means that these users will pay the protocol for the risk exposure their position creates.”
SushiSwap responded the next day, with head chef Jared Grey stating on the project’s Discord that Sushi will proceed with the interest rate changes. The fees generated by the two cauldrons will be split 35% between xSushi token holders.
Both tokens are not used on SushiSwap, according to Abracadabra, with RenCrv being a token wrapper designed specifically for Abracadabra and ETH being an interest-bearing token issued by yield aggregator Yearn Finance.
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.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Chubbi
Coincu News
Candy Jets, renowned for their top-tier private air travel solutions catering to business, leisure, and…
Ever since the crypto industry became popular and millions of users joined the wave, crypto…
London, UK, May 10th, 2024, ChainwireKintsu, a leading innovator in the DeFi space, is thrilled…
KuCoin resumes operations in India after paying a $41,000 penalty, while Binance registration in India…
Telegram trading bots represent a growing trend in cryptocurrency trading, offering both publicly and privately…
Notable contenders leading the charge in Ethereum ETF applications include VanEck, BlackRock, and ARK Invest,…
This website uses cookies.