Cream Finance writes off $1.3 million in debt after SWAG colla | Top DeFi

Cream Finance writes off $1.3 million in debt after SWAG collapse

SWAG Cream Finance's total pool liquidity fell from $18.1 million to $10,000 after the token collapsed, CryptoBriefing reports. Swag Finance's SWAG token plummeted this week, leaving Cream Finance with $1.3 million in bad debt.

Swag Finance's SWAG token fell from $0.0644 to a low of $0.0036 earlier this week, possibly due to an internal hack. Crypto Briefing revealed significant transaction volumes as high as 22 million SWAGs in the run-up to the crash.

Cream Finance was holding $1.3 million in debt in USDC and USDT, but when SWAG suddenly collapsed, the debt became illiquid. Total liquidity in the pool dropped from $18.1 million to $10,000 in a matter of minutes, leaving little money to pay liquidity providers.