Market maker and algorithmic trader Auros offers liquidity to exchanges and token projects.
Are Auros Global affected FTX Epidemic?
After failing to make an immediate payment on a 2,400 Wrapped Ether, (WETH) decentralized finance (Defi) loan, cryptocurrency trading company Auros Global looks to be affected by the FTX epidemic.
The Auros missed a principal payment on the 2,400 ETH loans, worth about $3 million, according to institutional credit underwriter M11 Credit, which oversees liquidity pools on Maple Finance. This information was shared with followers of M11 Credit in a Twitter thread on November 30.
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M11 Credit claims to be in constant contact with its borrowers, especially in light of recent developments, and said that Auros is dealing with a “short-term liquidity crisis as a result of the FTX insolvency.”
Our top priority is to limit the risk for our lenders. We will continue our liaison with the Auros team in regard to all their open loans from our pools.
— M11 Credit (@M11Credit) November 30, 2022
Although Auros, an algorithmic trading, and market-making company, has not yet commented on the claim made by M11 Credit, Maple Finance has retweeted the thread.
M11 Credit emphasized that just when a payment was missed, that doesn’t indicate the loan is in default. Instead, the “5-day grace period as per the smart contracts” has been triggered by the delayed payment.
According to this, Auros has until December 5 to make the late payment before being deemed in default.
What Does It Mean By Staked Maple Tokens?
A default might cause the borrower’s collateral to be sold off, and staked maple tokens and USDC on the platform could be utilized to make up any shortages to lenders, according to an official Maple Finance YouTube video. The New York courts may also be used to take enforcement action.
“Working with Auros to develop a joint statement that gives additional information to lenders,” according to M11 Credit, is what they claim to be doing.
Cointelegraph has contacted M11 Credit and Auros for comment, but no response has been received.
Is That BlockFi Declared Bankruptcy?
Bitcoin exchange On November 11, FTX declared that the company would file for bankruptcy due to a liquidity situation that left it unable to honour withdrawal requests. The ensuing epidemic has affected many more businesses. On November 28, BlockFi declared bankruptcy.
Due to its exposure to the failing exchange, Nestcoin had to fire employees and lose millions of dollars due to FTX’s demise.