Thorchain, a decentralized finance (DeFi) protocol, is facing a critical situation with approximately $200 million in toxic debt, leading the community to pause its savers and lending programs. This decision was made to prevent an impending disaster and provides a 90-day window for the community to devise a restructuring plan. With about $111 million currently invested in the protocol and $98 million locked in savers vaults, the inability to access funds has left users concerned. The initiative to halt transactions aims to stabilize the network as it grapples with insolvency fears, particularly after a substantial increase in asset minting has caused inflation of its native token, RUNE. The ongoing issues can potentially spiral further, as the community debates its future and how best to navigate this crisis. Despite the adversity, some notable figures in the crypto space believe Thorchain still possesses significant value.

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