Overview
- Most markets have been set to a 0% loan-to-value ratio, halting borrowing and prompting users to remove assets promptly.
- Scheduled timelock smart-contract updates will attempt to free funds stuck on lower-liquidity chains such as Manta, Zircuit and XLAYER.
- Partial refunds will be offered to users hit by the February 2025 LBTC exploit on Base, funded from the project’s LINEA allocation.
- The protocol’s multi-chain model struggled as liquidity thinned and price-feed providers discontinued support, resulting in prolonged losses.
- Reported figures show total value locked falling from about $359 million in late 2024 to just over $6 million before the announcement, with the token dropping after the news.