The Waves community has voted to restart the Vires.Finance lending protocol and plans to repay the lost $500 million to users.
The Waves blockchain community has proposed to restart the Vires.Finance lending protocol in a decentralized manner. Voting ended on July 29, with more than a quarter of the votes in favor of the plan. After the “DeFi Revival Master Plan” is approved, the Waves community will find a way to recover the lost funds.
In April, Vires.Finance faced a severe crisis, even classified as a “Ponzi project.” Derived from Neutrino (USDN), a stablecoin on Waves, dropped from the $1 peg even before the Terra ecosystem collapsed.
Since then, the platform ran out of liquidity, blocked users from withdrawing, and $500 million was wiped off the protocol.
Waves founder Sasha Ivanov transferred $500 million of bad debt to her wallet, announcing it would liquidate USDN and pay off the debt to investors.
To fix the situation, the Vires team submitted a proposal that gives users two options with balances above $250,000 on the platform. The first option is to exchange their positions for USDN, with a one-year vesting period and a 5% liquidation bonus. The second option is to remain in USD Coin (USDC) and Tether (USDT) with 0% APY, which Ivanov will repay without any guarantee on the payment time frame.
However, there were still some mixed opinions when this proposal was released. One user called this a “pure fraud.” Another claimed the community was “protecting thieves” instead of constructively arguing for the proposal.
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