DeFi default: Kinto shutdown prompts first haircut for Wildcat lenders
Less than two months after being hacked, decentralized finance (DeFi) platform Kinto has announced its decision to shut down “to protect users and community.” Kinto’s post-hack recovery plan, dubbed “Phoenix,” included raising $750,000 in crypto from private credit protocol Wildcat Finance, promising depositors 50% APR. The bridge loan turned out to be insufficient, however. Kinto explained that “the 577 ETH that were drained and new debt + market conditions killed further fundraising.” Lenders who deposited to the Phoenix market will take a 24% haircut, the first default for Wildcat creditors who have facilitated $368 million in loans since its public launch in February. 1/ Kinto is shutting down. After exhausting every path to keep going, we’re conducting orderly wind-down to protect users and community. – Users can normally withdraw assets – Phoenix lenders receive ~76% – Morpho Victims can claim up to $1.1k each Read full details ...