Liquity v2 has experienced outflows exceeding $17 million within 24 hours after cautioning users to withdraw from its new Stability Pools due to a potential issue under investigation. On February 12, the protocol alerted its users about the ongoing review, ensuring that all trading operations, including token redemption, collateral withdrawal, and staking services, remain unaffected. Despite this warning, Liquity reassured users that to date, there have been no reported impacts from the potential issue. The outflows led to a significant drop in the total value locked in Liquity v2, which fell 18% to $69.6 million from its previous high of $84.9 million on February 11. While Liquity v2 faced considerable withdrawals of approximately $11.3 million from Wrapped Lido Staked Ether (WSTETH) and lesser amounts from Rocket Pool ETH (RETH) and Wrapped Ether (WETH), the earlier version, Liquity v1, showed no significant investment outflows amidst the turmoil. The platform also urged investors to utilize previous frontends and remain vigilant against potential scams as they handle their assets.

Source 🔗