Liquity v2 outflows surpass $17M following stability pool warning

The decentralized liquity loan protocol experienced more than $ 17 million withdrawals after urging users to leave its V2 stability pools due to a current investigation into a potential threat.

According to ParadeAn increase of $ 17 million has left the platform in the last 24 hours. The total locity locity that fell fell, falling from its top of $ 84.9 million on February 11 to 67.84 million dollars. The outings mainly had an impact on the stability pools of the protocol containing Wsteth, Weth and Reth. Liquity V1 is not affected, showing no sign of similar withdrawal.

On February 12, Liquility V2 issued an urgent warning to users, advised them to withdraw funds from its stability pools. Shortly after the announcement of liquity, the giant of the Ethereum cleansing Pool also published a notice advisor to Wsteth’s holders to withdraw their assets from the stability pool of Liquility V2. Neither liquity nor Lido revealed specific details on the underlying threat. The immediate market reaction to these opinions has led to undergoing withdrawals.

The Liquony team has since informed users that the protocol works as usual and that all funds are safe. They assured investors that the main characteristics such as withdrawal from guarantees, buyout stableAnd sampling LQTY, always worked gently. They also confirmed that Bold, the stablecoin of Liquility, remained completely supported.

Liquility V2 was launched on January 23 with several new features aimed at improving loan and loans. The update has allowed users to use several assets as guaranteed. These include Steth, Reth and Weth. It also introduced a flexible interest rate system where borrowers could set rates between 0.5% and 1,000%. The stability pool was designed to reward users with interest and liquidation profits.

Now that Liquility V2 is investigation, the platform is faced with a major user confidence test. While withdrawals have slowed down, continuous uncertainty could affect the growth of the protocol. It is still not known if the problem has been completely solved or if it will lead to more instability. The liquidity token price has only been slightly affected and remains stable for the moment.