The post ThorChain Hits Pause on Loans & Savers Due to Debt Crisis appeared on BitcoinEthereumNews.com.

ThorChain pauses loans and savers for up to 90 days to safeguard the network. Swaps remain unaffected, ensuring uninterrupted functionality for users. Community involvement encouraged restructuring of ThorChain’s economic design. ThorChain, a decentralized swap provider, has announced a temporary halt to loans and savers for not more than 90 days. The move is intended to stabilize its network and protect liquidity providers (LPs). While swaps will remain fully operational, the team stressed the need for a community-driven proposal to refine its economic structure. To prevent any unforeseen events, the team has also cautioned against restarting lending or redemption features without community consensus. The team recommended using specific node commands like “PAUSELOANS” and “BURNSYNTHS” to enforce the pause effectively. This announcement comes as concerns grow about ThorChain’s economic and security design. Some community members even compared ThorChain’s current crisis to the $LUNA fiasco, raising questions about whether $RUNE could meet a similar fate. ThorChain in Crisis, Extreme Fixes Proposed One user warned of a catastrophic outcome in the event of a large-scale withdrawal from Ethereum and Bitcoin holders. Proposed solutions include freezing all lending and savers positions permanently, taking a snapshot of current debt, and tokenizing lending and saver claims. ThorChain could also implement an “Unwind Module” by allocating 10% of system income to clear liabilities. Further recommendations include setting up a buyer-focused auction to sell debt holders’ claims and creating a secondary market for peer-to-peer claim trading. Related:THORChain (RUNE) Price Prediction 2024-2030: Will RUNE Price Hit $15 Soon? Additionally, some experts have urged ThorChain to implement a “kill switch” to incentivize the withdrawal of RUNE pools and close them within a month. Critics argue that these steps, while extreme, are necessary to address ThorChain’s serious debt crisis. Whether the proposed changes will meet user expectations remains to be seen. Meanwhile,…

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Filed under: News - @ January 24, 2025 1:20 pm