Markets
Share this article

RUNE Plunges 30% as THORChain Pauses Bitcoin, Ether Withdrawals

The pause comes amid community concerns around the settlements protocol solvency.

By Shaurya Malwa|Edited by Parikshit Mishra
Updated Jan 24, 2025, 8:31 a.m. Published Jan 24, 2025, 7:01 a.m. 1 min read
plunge (shutterstock)
plunge (shutterstock)

What to know:

  • THORChain paused bitcoin (BTC) and ether (ETH) withdrawals on its lending and savers programs to prevent a potential insolvency risk.
  • Network node operators proposed and implemented a 90-day pause in early Asian hours on Friday.
  • THORChain's cross-chain swaps - its main service - remain unaffected.

Interblockchain settlements protocol THORChain paused bitcoin BTC$73,459.35 and ether (ETH) withdrawals on its lending and savers programs to prevent a potential insolvency risk.

Network node operators proposed and implemented a 90-day pause in early Asian hours on Friday, to formulate a plan to resolve debts, messages from THORChain's Telegram channels show.

THORChain's lending program only has BTC and ETH, but its saver vaults support more assets.

A potential insolvency situation could be created if all loans and savers positions were closed and repaid at exactly the same time, and if market sentiment also caused a steep decline in RUNE.

THORChain meets its lending obligations by minting RUNE and selling it into liquidity pools. As such, deposits had been turned off a year ago as the community became increasingly concerned with the risk at the time.

Some community members allege liabilities of nearly $200 million. Of that, some $107 million is contained in liquidity pools, which could be withdrawn or sold by liquidity providers (LPs) or RUNE holders in case of panic.

THORChain's cross-chain swaps - its main service - remain unaffected. Users can still perform swaps and utilize liquidity pools without disruptions.

ThorchainBitcoin NewsEther

More For You

Bitcoin, ether, XRP, dogecoin lag a nine-week stocks rally as ETF demand cools

作者 Shaurya Malwa
3小时前
ETFs (Markus Winkler/Pixabay, modified by CoinDesk)

The S&P 500 posted its longest weekly winning streak since 2023 and Brent oil stabilized near $92 on US-Iran ceasefire hopes. The biggest cryptocurrencies still drifted lower, with Hyperliquid's HYPE the only major name to rally.

需要了解的:

  • U.S. stocks and oil rallied, with the S&P 500 logging a ninth straight weekly gain and Brent crude hovering near $92 a barrel on hopes for a U.S.-Iran ceasefire extension.
  • Major cryptocurrencies lagged the macro rally, with bitcoin, ether and other large-cap tokens falling around 2% to 6% amid cooling...
Read full story