WEMIX.Fi - wRFT Lend & Borrow suspended WEMIX Medium : https: | WEMIX Announcement

WEMIX.Fi - wRFT Lend & Borrow suspended

WEMIX Medium : https://medium.com/wemix-communication/wemix-fi-wrft-lend-borrow-suspended-8b9cabd267be

Dear valued WEMIX community,

We would like to address an event that occurred on June 10th, concerning the temporary surge in the price of wRFT and a user borrowing against the inflated collateral value of the REFLECT token. As a result of the high volatility in wRFT's price, the liquidation process became unstable, resulting in bad debt for the lending protocol.

In light of this incident, we have made the decision to temporarily suspend the deposit and lending features for REFLECT. This is due to the lower liquidity of REFLECT compared to other assets on WEMIX.Fi, as well as its reliance on a single price source. However, we want to assure you that the withdrawal and liquidation functions for REFLECT, as well as all other assets supported on our Lend & Borrow service, will continue to operate as usual.

We understand the inconvenience this may cause and sincerely apologize for the incident. Our team is committed to creating a safe and secure DeFi ecosystem. We will be diligently addressing the bad debt incurred during this incident, and the process will commence on June 12th (Monday).

Thank you for your understanding and continued support.

Best regards,
The WEMIX Team