Pac Finance's sudden parameter change leads to a liquidation of 24 million US dollars

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2024/04/12 01:00

According to Mars Finance, as reported by Cointelegraph, users of the Blast Network's cryptocurrency lending app Pac Finance reportedly suffered a liquidation of $24 million on April 11 due to sudden parameter changes in the developer's wallet. The official Discord administrators claim they have notified the team about this issue. No official announcement has been made yet.

Pac Finance allows cryptocurrency holders to deposit funds and earn interest through lending capital. To ensure repayment, the app only allows borrowers to borrow a certain percentage of the value of their collateral. This percentage is known as "Loan-to-Value" (LTV). LTV can be changed by the development team but is usually implemented only after an announcement.

According to blockchain data from Blast Network, at 1:06 AM UTC on April 11th, Pac Finance's developer wallet called a function on its PoolConfigurator-Proxy contract that set ezETH’s LTV at 60%.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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