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3AC wallet drops below liquidation level risking over $200 million in ETH

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3AC wallet drops below liquidation level risking over $200 million in ETH

Rumored 3AC wallet drops below liquidation level risking over $200 million in ETH Liam ‘Akiba’ Wright · 3 hours ago · 1 min read

Rumors

The wallet rumored to belong to 3AC has just dropped below its maintenance level indicating the liquidation of over $200M ETH may be imminent

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1 min read

Updated: June 15, 2022 at 2:31 pm

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A wallet that was rumored to belong to investment firm 3AC has just dropped below the threshold for liquidation.

The wallet had over $184 million in stablecoin loans collateralized by $222 million in wETH. A health factor above 1.0 is required to stave off liquidation. However, as the price of Ethereum dropped below $1,047, the wallet is now earmarked for liquidation.

As of press time, there has been no on-chain action to suggest the loan has been liquidated, according to Etherscan. However, without the deployment of further capital, a liquidation event is imminent.

UPDATE 2 pm GMT: The 3AC tag has now been removed from Nasen suggesting the wallet may not belong to 3AC. Regardless of ownership if this wallet is liquidated selling pressure will be intensified for Ethereum.

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Babel

Crypto lender Maple Finance joins list of platforms facing liquidity issues

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Crypto lender Maple Finance joins list of platforms facing liquidity issues

Crypto lender Maple Finance joins list of platforms facing liquidity issues Oluwapelumi Adejumo · 8 hours ago · 2 min read

The DeFi protocol for institutional borrowers and lenders published an update saying “lenders must wait for borrower repayments.”

2 min read

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Updated: June 22, 2022 at 9:46 pm

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Maple Finance joined the growing list of crypto lending platforms facing liquidity challenges after announcing on June 21 that there might be insufficient cash in its pools.

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The DeFi protocol for institutional borrowers and lenders published an update saying ‘lenders must wait for borrower repayments.’

Maple Finance said current market conditions have increased the demand for liquidity among lenders and borrowers. It added that this demand could grow higher as the weeks deepen.

A spokesperson for Maple said the platform would survive all withdrawals in the coming weeks. Due to the protocol design, lenders can only withdraw cash when available. This means the platform does not need to limit or suspend withdrawal.

Maple also revealed that its lenders would continue to earn MPL (its native token) rewards regardless of the wait time from the borrowers.

Meanwhile, Maple has explained how to mitigate risks and access borrowers. The list of its borrowers is publicly available. It currently has 66 active loans valued at $1.5 billion.

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Maple denies exposure to Celsius, others

Maple has assured its lenders that it has no direct exposure to any other struggling crypto firm facing liquidity issues.

The crypto lender revealed in a press update that Celsius Network does not borrow from its platform; instead, the embattled firm is the only lender in the pool it operates.

Celsius lend capital from their own balance sheet and do not borrow from Maple.

They are the only lender into the $20m pool they operate. There are no outside depositors and the pool has no interdependencies with the other pools.

All of this information is on the Maple webapp

— Maple (@maplefinance) June 13, 2022

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On Three Arrow Capitals, Maple says it has determined that

“Most borrowers are market/delta neutral and trade market volatility which means we believe they are unlikely to have direct exposure to 3AC.”

Maple acknowledges that its Orthogonal USDC pool gave Babel Finance, which has temporarily suspended withdrawals, a $10 million loan.

Orthogonal acknowledges there is a $10M loan to Babel from the Orthogonal USDC pool on Maple.

Orthogonal has been in daily contact with Babel management since Babel halted withdrawals and is focused on protecting the interests of lenders.

— Maple (@maplefinance) June 21, 2022

However, it says it has been in contact with the Babel’s management and will provide new updates as they arrive.

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Exchanges

BlockFi gets $250 million credit facility from FTX to support platform

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BlockFi gets $250 million credit facility from FTX to support platform

BlockFi gets $250 million credit facility from FTX to support platform Jinia Shawdagor · 5 hours ago · 1 min read

BlockFi intends to use the proceeds of the $250 million credit facility to bolster its balance sheet and platform strength.

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Updated: June 21, 2022 at 5:17 pm

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Crypto lending platform BlockFi has signed a term sheet with leading crypto exchange FTX to secure a $250 million revolving credit facility, BlockFi CEO Zac Prince announced June 21.

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Today @BlockFi signed a term sheet with @FTX_Official to secure a $250M revolving credit facility providing us with access to capital that further bolsters our balance sheet and platform strength.

— Zac Prince (@BlockFiZac) June 21, 2022

According to Prince, this agreement will offer BlockFi access to additional capital, which the firm will use to strengthen its balance sheet.

The proceeds of the credit facility will contractually be subordinate to all client balances across all BlockFi accounts. These include BlockFi Interest Account (BIA), BlockFi Personalized Yield (BPI), and BlockFi loan collateral. BlockFi intends to use the proceeds to bolster its operations as the bear market continues ravaging the crypto space.

BlockFi seeks to keep user funds safe

Prince noted that this deal underscores BlockFi’s commitment to serving its clients and ensuring the safety of their funds.

In the past week, Celsius Network suspended withdrawals, swaps, and transfers on its platform due to liquidity issues. In a ripple effect, crypto hedge fund Three Arrows Capital (3AC) faced liquidation after failing to meet margin calls from lenders. According to a Financial Times report, BlockFi was among the lenders that liquidated 3AC.

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While BlockFi did not confirm its role in liquidating 3AC, Prince said the company liquidated a large counterparty after failing to meet margin calls. He did not reveal the name of the said counterparty. However, Prince claimed BlockFi was among the first lenders to liquidate the third party, and that acting quickly helped keep customer funds safe.

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Elon Musk

Twitter board asks shareholders to approve Elon Musk’s $44 billion bid

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Twitter board asks shareholders to approve Elon Musk’s $44 billion bid

Twitter board asks shareholders to approve Elon Musk’s $44 billion bid Oluwapelumi Adejumo · 8 hours ago · 2 min read

Musk’s offer for Twitter would earn each shareholder $54.20, which is ahead of the current value of the shares at $38.

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Updated: June 21, 2022 at 6:40 pm

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Twitter’s board unanimously recommends that shareholders vote for Elon Musk’s $44 billion bid to take over the social media company, a June 21 SEC filing shows.

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According to the filing, Musk’s offer for Twitter would earn each shareholder $54.20, which is ahead of the company’s current shares value of $38.

The board has urged the shareholders to vote in support of the merger agreement, the compensations that would be payable to Twitter executive officers, and the adjournment of the meeting due to insufficient votes.

Meanwhile, the merger has an Oct. 24 deadline, but a date has not been chosen for the shareholders’ votes.

Elon Musk’s protracted Twitter purchase

Elon Musk’s interest in Twitter has hit some snags as the richest man in the world had insisted that the social media site be more transparent about the number of bot accounts on its platform.

Those issues, however, appear to be in the past as Musk recently held a virtual meeting with Twitter employees. During the meeting, he hinted that the platform could integrate a  payment system that allows cryptocurrency transactions.

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Several analysts have opined that the virtual meeting is the latest signal that Elon Musk remains committed to completing the acquisition.

Who profits from the takeover?

If the shareholders ratify the takeover bid at the current value of Twitter shares, each shareholder would be pocketing around $15 for every stock they own in the company.

It means Jack Dorsey, Twitter’s co-founder, who owns 18,042,428 shares, would be receiving $978 million from the deal. Other top shareholders like The Vanguard Group, Morgan Stanley, and BlackRock would earn $4.4 billion, $3.6 billion, and $2.8 billion, respectively.

Also, top Twitter executives like CEO Parag Agrawal and CFO Ned Segal could earn as much as $42 million and $25 million, respectively. This is because a “change in control” clause in their contract allows them to be paid massively if they are terminated within 12 months of new ownership.

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