Iron Bank Urges Alpha Homora To Repay Bad Debt Worth $30 Million
- DeFi lending platform Iron Bank has requested Alpha Homora to accept ownership of its bad debt.
- The halt was imposed in reaction to Alpha Homora’s $30 million bad debt, which emerged as a result of a malicious attack in February 2021.
- The DeFi lending platform stated that it had frequently requested from Alpha Homora a way to equalize its bad debt, but to no effect.
Iron Bank, a DeFi lending platform, has urged Alpha Homora to repay bad debts.
Iron Bank suspended Alpha Homora’s lending accounts on March 1 in response to $30 million in bad debts incurred after Alpha Homora was maliciously exploited in February 2021.
Iron Bank stated that it had frequently requested from Alpha Homora a remedy to equalize its bad debt, but to no effect. Written solutions, it claims, guarantee complete transparency for all parties concerned.
Alpha Homora’s loan account is still being stopped. Users cannot withdraw their money. According to Iron Bank, this step is intended to shield its other customers from Alpha Homora’s bad debt.
Alpha Homora previously said it was in communication with Iron Bank about a possible solution.
Tascha Punyaneramitdee, CEO of AlphaVentureDAO, wrote an open letter revealing past agreements between Alpha Homora and Iron Bank on Thursday. The AlphaVentureDAO is the DAO that powers the Alpha Homora system. These agreements involved locking up 50 million ALPHA tokens as collateral and paying off the loan with 20% of Alpha Homora’s protocol fees.
However, Iron Bank said on Friday that Alpha Homora had not met the terms of its commitment to repay the debt.
Iron Bank is a capital-efficient decentralized lending platform that allows protocols and people to provide and borrow bitcoins on Ethereum, Fantom, Avalanche, and Optimist. By improving capital efficiency with trustworthy organizations as the liquidity infrastructure and backbone for DeFi and CeFi, it is helping to develop a better and safer DeFi lending environment.
The DeFi platform uses smart contract automation to provide protocol-to-protocol lending through whitelisting, as well as undercollateralized and uncollateralized lending. Fixed Forex (Keep3r Network), Yearn Vaults (Yearn Finance), Alpha Homora (Alpha Venture DAO), Multichain, PleasrDAO, and others are among the partners. While it is primarily intended for protocol users, non-protocol users can also provide and borrow on Iron Bank.
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