WEMIX

On July 30th, a sudden price drop in WEMIX$ led to the liquidation of positions in the WEMIX$-collateralized Lend &amp; Borrow service.Upon confirming the liquidations, the WEMIX Team temporarily suspended the Lend &amp; Borrow service to conduct a thorough investigation and implement necessary measures. The service was fully restored on August 1st, and the WEMIX$ price has remained stable since.Following our priority of stabilizing the service, a comprehensive review of the details has been conducted, and an update on the situation and subsequent actions is now being provided.[Liquidation] • Liquidations in lending services occur due to price fluctuations of collateral and loaned assets, serving as a critical function to protect deposited assets and maintain the stability of the lending service. • The WEMIX.Fi Lend &amp; Borrow service utilizes a liquidation system based on price oracles, similar to other lending services. This recent liquidation proceeded according to the predefined process. However, it was identified that the volatility of a small liquidity size of MLP significantly influenced the WEMIX$ price during the oracle’s validation process.[Relief] • Liquidations in lending services constitute a potential risk factor, and it is customary that no separate preservative measure is provided for liquidated collateral assets. Therefore, users must exercise diligent management of their debt ratios. • However, considering the impact of the volatility of the small liquidity size of MLP on the WEMIX$ price during this liquidation, the WEMIX Team conducted a thorough review. • Following extensive deliberation, it was concluded that this liquidation was an anomalous event rather than a requisite process for maintaining service stability. Therefore, it has been decided to preserve the losses incurred due to the liquidation.The relief measures for the liquidation will be carried out as follows.[Measures] • Preserve the difference between the liquidated collateral value and the borrowed loan value • Preserve the losses on liquidated collateral due to liquidation fees • Preserve the Lend assets by having the foundation repay the bad debt arising from liquidation on behalf of the borrowersThe required preservation will be calculated after a detailed review of the liquidated WEMIX$ collateral loan positions and will be directly transferred to the affected wallets within a maximum of 7 business days. ※ Preservation procedures are scheduled for next week. Please refer to the sheet below for more details. <a href="https://docs.google.com/spreadsheets/d/1JC5esdt4fSBfsHNxVMSdyN8S0u1UrhXHwTGTDcwoDvs/edit?gid&#61;0#gid&#61;0" rel="noopener noreferrer nofollow">[Lend &amp; Borrow] WEMIX$ Compensation Plan</a>The WEMIX Team remains steadfast in its commitment to enhancing the stability of the WEMIX$ service through initiatives such as the establishment of new MLPs.Thank you.[Link] • WEMIX.Fi : <a href="https://wemix.fi/" rel="noopener noreferrer nofollow">https://wemix.fi/</a>Official WEMIX site announcement : <a href="https://www.wemix.com/communication/lend-borrow-wemix-liquidation-relief-measures-fd18de0b74d9" rel="noopener noreferrer nofollow">https://www.wemix.com/communication/lend-borrow-wemix-liquidation-relief-measures-fd18de0b74d9</a>[WEMIX Community] • WEMIX Official Webpage : <a href="https://www.wemix.com/communication" rel="noopener noreferrer nofollow">wemix.com</a> • Medium : <a href="https://medium.com/wemix-communication" rel="noopener noreferrer nofollow">WEMIX Communication</a> | <a href="https://medium.com/wemix-play" rel="noopener noreferrer nofollow">WEMIX PLAY</a> | <a href="https://medium.com/nile-official" rel="noopener noreferrer nofollow">NILE</a> • WEMIX Channels : <a href="https://twitter.com/WemixNetwork" rel="noopener noreferrer nofollow">X (formerly Twitter)</a> | <a href="https://www.facebook.com/WEMIXBlockchain" rel="noopener noreferrer nofollow">Facebook(WEMIX Platform)</a> | <a href="https://www.facebook.com/WEMIXGames" rel="noopener noreferrer nofollow">Facebook(WEMIX Games)</a> | <a href="https://t.me/WEMIX_ANNouncement" rel="noopener noreferrer nofollow">Telegram</a>

Lend & Borrow WEMIX$ Liquidation Relief Measures

WEMIX

Other articles published on Aug 6, 2024

Solana’s Memecoins and Cardano’s Recent Update Fails to Generate Hype, Why is Algotech Going Up?

Valour to launch digital asset ETPs in Kenya

Amber Group Profits from MKR Sale

Ripple’s XRP Climbs to 14% of Global Trading Volume as US Demand Rebounds to Pre-SEC Levels

Binance Faces $86M Tax Bill from Indian Authorities: Report

Massive Sell-Off: Top Cryptos to Buy at Bargain Prices

Join our free newsletter for daily crypto updates!