DeFi

Auros Global Takes 2400 wETH Debt For FTX Crisis

Auros Global, a cryptocurrency trading company, is suffering from FTX contagion after failing to make a principal repayment on a 2,400 Wrapped Ether (wETH) decentralized financing (DeFi) loan.

M11 Credit, which oversees liquidity pools on Maple Finance, informed that the Auros had missed the main payment on the 2,400 wETH loan, which is worth almost $3 million in total.

M11 Credit has also said that a missing payment does not constitute a loan default. Instead, the late payment prompts a “5-day grace period as per the smart contracts.”

This means Auros has until December 5 to make the late payment before it is declared in default.

M11 Credit claims that it is constantly in close contact with its debtors, especially following recent events and that Auros is having a short-term liquidity crisis as a result of the FTX insolvency.

According to an official Maple Finance YouTube video, if a borrower defaults, the collateral may be liquidated and/or staked maple tokens and USDC on the platform utilized to offset any lender shortages.

It seems that the consequences of FTX are too great for the market, other crypto companies are also in a difficult situation, BlockFi is the latest name to have filed for Chapter 11 bankruptcy protection because of the crisis.

Auros is an algorithmic trading and market-making firm that delivers best-in-class liquidity for exchanges and token projects. Founded in 2019, the company account for a significant proportion of global cryptocurrency volume. Combining the technological innovation that powers its high frequency trading strategies with a unique partnership-based approach, it is redefining liquidity provision and sustainable growth in the digital assets space

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

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.