Crypto trading firm Auros Global appears to be suffering from FTX infection after missing a principal repayment.
Following the failure to make the required main payment on a 2,400 wrapped ether (wETH) decentralized finance (DeFi) loan, the cryptocurrency trading company Auros Global looks to have an FTX infection.
On November 30, institutional credit underwriter M11 Credit, which oversees Maple Finance’s liquidity pool, tweeted to its followers that Crypto trading firm had not made principle payments on the 2,400 wETH loan, which amounts to around $3 million.
Following the events of last month, M11 Credit claims to have maintained constant contact with its borrowers. It also stated that Auros is “experiencing short-term liquidity issues as a result of the FTX bankruptcy.”
Threaded Shared Only through Maple Finance while Auros, an algorithmic trading and market-making company, has not yet responded to M11 Credit’s remark.
The fact that a payment is missing does not automatically put a loan in default, as M11 Credit has stressed. Instead, the “5-day grace period.
The present business model for unsecured crypto lending has taken another hit because to Auros’ missing payment.mAs a result of the severe decline in the cryptocurrency market, several loans made through decentralized lending protocols have fallen due in recent months.
By failing to repay their loans from credit pools on TrueFi, Blockwater, Invictus Capital, and Alameda left the platform with $11 million in bad debt.
After the debt made to Babel Finance was liquidated in June, Maple’s creditors endured a $7 million loss. Unsecured credit companies like Clearpool, Maple, and TrueFi assert that they are somewhat decentralized. However, in the event of a loan default, they are forced to use conventional, cumbersome, and largely centralized remedies like debt restructuring or court-assisted liquidation.
