DeFi
DeFi lending platform Iron Financial institution has urged Alpha Homora to “take possession” of its dangerous debt amid a tussle between the 2 liquidity platforms.
Iron Financial institution paused Alpha Homora’s lending account on March 1. Iron Financial institution is a DeFi protocol that gives liquidity to different DeFi lending platforms, together with Alpha Homora. The pause got here in response to Alpha Homora’s $30 million dangerous debt that arose after a malicious exploit in February 2021.
Iron Financial institution mentioned that it had repeatedly requested Alpha Homora to supply an answer to rebalance its dangerous debt, however to no avail. “They proceed to hunt personal calls somewhat than transparently present a written resolution,” Iron Financial institution mentioned on Friday. The DeFi lending platform mentioned written options present full transparency for all events concerned.
Alpha Homora beforehand mentioned that it was speaking with Iron Financial institution on doable options. AlphaVentureDAO CEO Tascha Punyaneramitdee issued an open letter on Thursday detailing earlier agreements between Alpha Homora and Iron Financial institution. AlphaVentureDAO is the DAO behind the Alpha Homora protocol. These agreements included locking up 50 million ALPHA tokens as collateral and utilizing 20% of Alpha Homora’s protocol charges to service the debt.
Nonetheless, Iron Financial institution mentioned on Friday that Alpha Homora has not met the phrases of its dedication to repay the debt. “Alpha Homora must take possession for the price of their very own exploit,” Iron Financial institution mentioned.
Alpha Homora’s lending account on Iron Financial institution stays paused. Customers are unable to withdraw their funds. Iron Financial institution says this measure is supposed to guard its different customers from Alpha Homora’s dangerous debt.
