The decentralized lending protocol Project 0 has announced the resumption of operations after suspending services and initiating a deleveraging process following a hack on the Drift protocol. Project 0 stated that the remaining socialized loss amount of approximately $1.9147 million will be distributed across the credit pool, resulting in an average write-down of 2.61% for lenders. Write-downs are set at 1% for USDC, SOL, and USDT; 2.61% for BTC and ETH; and 6.62% for WIF, BONK, and governance tokens. As Drift assets are subsequently unlocked and returned to users, the actual loss magnitude will be lower than the baseline figures. Some community members have expressed dissatisfaction with the unified credit pool mechanism.
Project 0 Resumes Operations Following Drift Hack; Lenders Face Average 2.61% Haircut
AiCoinShare
Summary
Project 0 has resumed operations following a pause caused by the Drift protocol hack, a major cryptocurrency security incident. The remaining $1.9147 million in socialized losses will be distributed across the credit pool, resulting in an average 2.61% haircut for lenders. USDC, SOL, and USDT will face a 1% haircut; BTC and ETH a 2.61% haircut; and WIF, BONK, and governance tokens a 6.62% haircut. As Drift assets are recovered, the actual loss may be lower. Some users have criticized the unified credit pool model.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.