Waves community okays plan to end liquidity crisis on lending protocol Vires Finance

Quick Take

  • The Waves blockchain community has voted in support of a revival plan for Waves-based lending protocol Vires Finance.
  • The plan aims to solve the ongoing liquidity crunch that the protocol has faced since April.

The Waves blockchain community has backed a governance proposal to address the liquidity problems currently facing Waves-based DeFi lending protocol Vires Finance, the project announced on Tuesday.

The vote, which ended on July 29, saw over three-quarters of all votes cast in support of the proposal.

Vires Finance has been dealing with a liquidity crunch since the start of April. The problem began when Neutrino (USDN), a stablecoin on Waves, temporarily lost its peg to the US dollar. This situation triggered a bank run on Vires Finance, the major lender in the Waves ecosystem. The bank run dried up liquidity on the platform preventing other users from being able to withdraw their funds.

Based on comments in the forum discussion, Vires Finance lenders with more than $250,000 in either tether (USDT) or USD coin (USDC) in their accounts were unhappy with a previous plan that would have called for them to be repaid in USDN instead of their USDT or USDC deposits.

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