Almost $1 Million in ETH Tokens Locked in PercentFinance

November 6, 2020

Almost $1M in Ether (ETH) tokens are locked in the latest DeFi (Decentralized Finance) app after its developers made amendments to the interest rate smart contracts’ protocols.

 

PercentFinance, a Decentralized Finance lending stage, a fork of Compound Finance, wrote in a blog entry on November 4 that some cryptocurrency markets encountered an issue that can bring about permanent locking of client reserves. The group froze currency markets explicitly for wrapped Bitcoin (WBTC), USDC (United States Dollar Coin), and Ethereum (ETH).

 

A total of 28 WBTC (Wrapped Bitcoin), 313 ETH, and 446K USDC, worth nearly $1 million are currently frozen. However, as per the post, half of the portion of these immobile reserves belong to PercentFin

 

ance’s community mod team. The team is insisting the customers not to borrow from any of PercentFinance’s market as of now, though withdrawals for other markets are open.

 

Vfat moved to update a portion of these smart contracts, explicitly those that handle the financing costs for the stage’s advances. After Vfat concluded the changes and sent them, he understood the signatures for the new contracts and smart contracts were incompatible, so transactions couldn’t be signed to them.

 

Because WBTC (Wrapped Bitcoin) and USDC have closet into their smart contracts, these issuers will be able to block the addresses with the locked reserved. After the blacklisting, Centre, and BitGo could reissue the latest token to the old token holders, something Tether did for an exchanger who unintentionally transferred $1 million in USDT (Tether) token to the incorrect address.

 

Total 100%, of the PercentFinance loaning stage’s WBTC, is secured, so without collaboration from BitGo, those assets are lost to the ether (ETH). Moreover, 100% of PercentFinance’s ETH reserves were additionally frozen, and there’s no useful method to recoup these assets.

 

Image Courtesy : Pixabay

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