Creditors of DeFi project Cream Finance face bankruptcy

Creditors of DeFi project Cream Finance face bankruptcy

Cream (CREAM) and Alpha Finance (ALPHA) HACKED: 37.5 Million LOST!

Contents

Creditors of DeFi project Cream Finance face bankruptcy
CONTENT

  • DeFi Crypto Lending Platform Threatens To Collapse

  • The number of tokens in the liquidity pool is off the charts

  • It is still possible to save creditors, but there is no answer from the developers yet

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Cream Finance’s decentralized platform could collapse under the weight of collateralized tokens

Native Token As the use of cryptocurrencies grows, new types of tokens are emerging. They can represent value or something intangible like voices. Two … More cryptocurrency project Cream Finance (CREAM) is ready to depreciate to zero. At least this is the conclusion reached by the anonymous blockchain analyst Meeseeking. According to Meeseeking on its Twitter page, the owners of CREAM tokens do not understand that the Cream Finance project is on the verge of collapse due to the overwhelming amount of collateral inherent in FTT tokens..

Creditors of DeFi project Cream Finance face bankruptcy

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Source: app.cream.finance

At the time of this writing, the Cream Finance liquid pool contains $ 78.8 million in FTT tokens, which is ~ 25% of the total supply of tokens in circulation.

“Do the owners of CREAM tokens understand that the entire platform is under threat of existence?” – Meeseeking wrote.

At the same time, the amount of CREAM tokens in the liquidity pool reached $ 7 million, which is about 40% of the total turnover of the Cream Finance project token. The analyst believes that in the event of a sharp fall in the price of FTT, CREAM will collapse next, as a result of which, creditors will no longer be able to return their funds.

Creditors of DeFi project Cream Finance face bankruptcy

Regulation of crypto loans

An anonymous blockchain analyst believes that it is still possible to fix the situation. To hedge against the collapse of the entire project, developers must introduce a control protocol for limited lending using FTT tokens. 

Creditors of DeFi project Cream Finance face bankruptcy

“Significantly lower the collateral ratios and this will significantly reduce the risk,” added Meeseeking.

The analyst advised lenders fearful of their funds to withdraw tokens from the platform until the vulnerability is resolved and the lending ratios for centralized coins like FTT and SRM are not properly configured.

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Cream Finance is a decentralized peer-to-peer cryptocurrency lending protocol forked from another similar project, Compound Finance. It is noteworthy that the token of the Compound Finance (COMP) project itself has already managed to collapse, but not because of a technical error of the project, but as a result of breaking through the long-term support level against the background of the fall of the entire decentralized finance market (DeFiDecentralized finance (DeFi) – this is financial services, built on blockchain technology, which offer users access to open, effective and … More).

The BeInCrypto editors also previously reported that at least 90 tokens in the top 100 DeFi assets list are already suffering serious losses on a weekly scale due to the correction of the entire market..

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