As of the time of writing, 8 payments amounting to $645,405 towards loan repayments have so far been completed by Blockwater.
TrueFi, a decentralized lending protocol, has a anunțat that South Korean blockchain investment firm Blockwater Technologies defaulted on a loan. According to a blog post published by the company, Blockwater failed to honor a scheduled payment due on its amended $3.4 million loan in Binance USD (BUSD) stablecoin. In light of this, the group has disclosed that they will continue to be vigilant and proactive with borrowers despite this being the only declared default to date. Also, it was clarified that “the Blockwater default does not affect lenders in TrueFi’s USDC, TUSD, USDT stablecoin lending pools, nor any of TrueFi’s capital market portfolios.”
The company believes that due to the complexity around this insolvency, there would be a better outcome for stakeholders in any potential court-supervised administrative proceeding.
“While we always prefer to pursue an out-of-court solution with distressed borrowers, in some instances an administrative proceeding is the best option in preserving value for stakeholders,” said a relationship manager between lenders and borrowers on the TrueFi Protocol, Roshan Daria, head of lending at ArchBlock.
In addition, TrueFi would be focused on maximizing recovery for lenders and stakeholders. As of the time of writing, 8 payments amounting to $645,405 towards loan repayments have so far been completed by Blockwater.
“$2,967,458 remains due at the time of the default. Further updates will be provided to the TrueFi community and any action required by TrueFi DAO will be subject to tokenholder vote and approval,” said TrueFi.
According to the company, it originated $1.7 billion in unsecured loans and ensured that around $1.5 billion in repayments across 136 loans were successfully collected. It has also generated $34.34 million for lenders.
“TrueFi is facilitating nearly $140 million of active lending across 10 loans. The TrueFi credit group believes that the loan book continues to remain in strong standing and has been actively pursuing loan renewals given continuing borrower demand and support from major lenders,” according to the blog post.
The company has also disclosed that it provides certain protection for lenders against default in the form of TrueFi SAFU. This may appropriate up to 10% of staked TRU for lenders affected by a default. It was disclosed that collection action against borrowers and invoking these mechanics would be up for discussion on the TrueFi forum.
Excelentul John K. Kumi este un pasionat de criptomonede și fintech, manager de operațiuni al unei platforme fintech, scriitor, cercetător și un mare fan al scrierii creative. Cu o experiență în economie, el găsește un mare interes pentru factorii invizibili care determină schimbarea prețului în orice măsurat cu evaluarea. El a fost în spațiul crypto / blockchain în ultimii cinci (5) ani. În majoritatea timpului, el urmărește momente de fotbal și filme.
Source: https://www.coinspeaker.com/crypto-blockwater-defi-loan/