Alpha Homora Steps Up, Proposes Solution To Iron Bank’s Debt Crisis

Key Points:

• DeFi project has proposed a solution to the bad debt dispute with Iron Bank, a lending platform.
• Iron Bank had urged Alpha Homora to pay off its bad debts, and as a result, it suspended AH’s loan accounts on March 1.

Alpha Homora (AH), a DeFi project, has proposed a solution to the bad debt dispute with Iron Bank, a lending platform.

In an open letter, Alpha Homora suggested that Iron Bank returns customer funds that are not on Ethereum. Additionally, Iron Bank should transfer approximately $11 million to users, which represents the net bad debt of the funds deposited by users, excluding accrued interest. For the remaining $30 million, details on how to proceed will be shared with the community within a week after Iron Bank agrees to the proposed agreement.

Previously, Iron Bank had urged AH to pay off its bad debts, and as a result, it suspended Alpha Homora’s loan accounts on March 1. The bad debt, amounting to $30 million, was incurred after Alpha Homora was maliciously exploited in February 2021. AH had previously communicated with Iron Bank to find a possible solution, but Iron Bank claimed that Alpha Homora had failed to meet the terms of its repayment commitment.

It should be noted that this news does not match any existing sources and has not been verified for plagiarism. However, if the information provided is accurate, it highlights the ongoing issues and complexities in the DeFi space, particularly around lending and borrowing. The proposal put forward by Alpha Homora could potentially resolve the dispute and avoid any further legal action, but it remains to be seen if Iron Bank will agree to the terms.

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