Thorchain, a DeFi protocol enabling asset swaps across various blockchains, is facing insolvency with $200 million in liabilities. As a result, it has paused its savers and lending programs to prevent a financial disaster. Users are currently unable to withdraw approximately $111 million in digital assets, locked due to the protocol's financial troubles. $98 million worth of assets is locked in savers vaults, including significant amounts of Bitcoin and Ethereum. The network's current strategy involves restructuring to address its debts, allowing a 90-day period for community-led solutions. Validators have called for this pause to devise a plan, acknowledging that the protocol is operational but unsustainable under present liabilities. Thorchain's native asset, RUNE, has seen a massive supply increase due to the debt dynamics, further pushing down its market price. While some believe in the viability and future of Thorchain, significant restructuring is crucial to stabilize the protocol and restore user confidence, as indicated by recent discussions within its community and leadership.

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