April 04, 2025
11 11 11 AM
Latest Post
Not a Meme! DePIN Can Take Crypto Mainstream TON’s Dramatic Volatility Signals Market Uncertainty Crypto-Friendly Prime Broker Hidden Road in Active Takeover Talks: Sources Illinois to Drop Staking Lawsuit Against Coinbase Dogecoin Volatility Surge: From Stability to Dramatic Decline Luxor’s Aaron Forster on Bitcoin Mining’s Growing Sophistication Investment Firm Republic to Acquire Crypto Trader INX Digital for Up to $60M WisdomTree Expands Institutional Tokenized Fund Platform to Arbitrum, Avalanche, Base and Optimism USDC Navigates Global Market Stress With Minimal Volatility Bitcoin Nears $80K but ‘Turning Point’ in Sight, Suggests Analyst

RUNE Plunges 30% as THORChain Pauses Bitcoin, Ether Withdrawals

Interblockchain settlements protocol THORChain paused bitcoin (BTC) and ether (ETH) withdrawals on its lending and savers programs to prevent a potential insolvency risk.

Network node operators proposed and implemented a 90-day pause in early Asian hours on Friday, to formulate a plan to resolve debts, messages from THORChain’s Telegram channels show.

THORChain’s lending program only has BTC and ETH, but its saver vaults support more assets.

A potential insolvency situation could be created if all loans and savers positions were closed and repaid at exactly the same time, and if market sentiment also caused a steep decline in RUNE.

THORChain meets its lending obligations by minting RUNE and selling it into liquidity pools. As such, deposits had been turned off a year ago as the community became increasingly concerned with the risk at the time.

Some community members allege liabilities of nearly $200 million. Of that, some $107 million is contained in liquidity pools, which could be withdrawn or sold by liquidity providers (LPs) or RUNE holders in case of panic.

THORChain’s cross-chain swaps – its main service – remain unaffected. Users can still perform swaps and utilize liquidity pools without disruptions.

This post was originally published on this site