Gauntlet Proposal Suggests Compound Emergency Pause of USDC, USDS, and USDT Borrowing Markets on Ethereum
BlockBeats News, November 5th, DeFi research and risk management company Gauntlet made a proposal on the Ethereum lending protocol Compound forum, suggesting implementing a temporary emergency pause on the following standalone borrowing markets in Compound v3, including: USDC on Ethereum, USDS on Ethereum, USDT on Ethereum.
Gauntlet stated that a liquidity crisis was observed in Elixir's deUSD and sdeUSD, both of which are listed as collateral on Ethereum USDC, USDS, and USDT. Gauntlet has proposed updating the risk parameters (Tally), but these proposals have not yet been approved by the governance council. Before the proposal is approved, Gauntlet suggests pausing withdrawals for the affected tokens. This means that borrowing or withdrawing liquidity for Ethereum USDS, USDC, and USDT tokens in Compound v3 will be temporarily suspended.
Yesterday, Stream Finance disclosed a $93 million loss in its fund assets, with Elixir bearing a $68 million exposure, as liquidity crises emerged in Elixir's deUSD and sdeUSD.
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