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THORChain is Insolvent, Cannot Meet its Bitcoin and Eth Denominated Obligations

Validators decided to pause the network while they vote a restructuring plan

> Thorchain's liabilities are $97m of lending liabilities ($eth $btc)
> Approximately $102m worth of savers and synths ($eth $btc)
> Their assets are $107m of exogenous liquidity into the liquidity pools, 
> Which can also be pulled by LPs at any time or sold into by $rune holders if there is panic.

Source: https://x.com/1984_is_today/status/1882616341926162653

.@THORChain is insolvent

In the event of any large debt redemption and/or savers &amp; synths deleveraging, it is certain that TC cannot meet its bitcoin and eth denominated obligations.

Validators decided to pause the network while they vote a restructuring plan

🔽🧵

Part of Web3〽️ 

Farcaster Warpcast Degen

This situation highlights the importance of thorough risk management in DeFi projects. It's crucial for investors to carefully assess the risks involved and for projects to have robust strategies in place to handle such scenarios. Transparency and clear communication during crises like this are key to maintaining trust within the community.