The interim judicial managers of hodlnautdotcom are considering whether to unwind assets held on DeFi protocols to mitigate risk ahead of the Ethereum merge. Reporting by oknightcrypto
According to the statement, a particular risk of the Merge, which looks set to go ahead on Thursday, relates to so-called pricing oracles, which feed data to the smart contracts that govern DeFi protocols. The Merge may lead the oracles to"give out erroneous prices during the transition," leading smart contracts to automatically liquidate the company's assets.
Under the Merge, Ethereum will shift from a proof-of-work consensus algorithm to proof-of-stake one. If, as has been proposed, the blockchain splits, or forks, so that a proof-of-work version continues to operate, it's possible the oracles will source pricing data from the wrong system. "One of the ways of mitigating such risks in advance of the Merge would be for Hodlnaut HK to unwind the Tokens deployed on the DeFi platforms, which may result in material losses," Loh Cheng Lee said. Hodlnaut HK is one of the Singapore entity's operating companies., a form of creditor protection and debt restructuring, on Aug. 30, three weeks after it froze withdrawals citing"difficult market conditions.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Merge and other major crypto stories to look out for this weekThe crypto space heads into what should be a momentous week for the industry as Ethereum moves to complete The Merge.
Read more »
Bitcoin Tops $22,000, Hitting Highest in Nearly a Month Ahead of Inflation Data and Ethereum MergeThe Ethereum network will complete a long-awaited upgrade called the merge this week and anticipation of this helped lift crypto markets.
Read more »
Algorand Foundation outlines $35M exposure to crypto lender HodlnautThe Algorand Foundation has just revealed that $35 million USDC was invested with crypto lending platform Hodlnaut, which paused withdrawals in August.
Read more »
Google gets in on Ethereum Merge excitement with nifty easter eggGoogle developers are not the only ones watching the Ethereum Merge with keen interest, search data has placed 'Ethereum Merge' at an above 50 score several times over the last 30 days.
Read more »
Merge Ready: Ethereum Completes Last Shadow Fork Before the TransitionEthereum went through the last shadow fork before the Merge successfully.
Read more »