Auros is a trading algorithm and market that enables companies to provide liquidity for token exchanges and projects.
Crypto trading firm Auros Global appears to be suffering from the FTX campaign after it canceled a capital refund on a 2,400 Wrapped Ether (wETH) decentralized finance (DeFi) loan.
The credit bureau M11 Credit, which manages the pool of water and Maple Finance, told its followers on Nov. 30 Twitter threads that Auros has lost principal on 2,400 weTH loans, worth about $3 million in total.
M11 Credit indicated that it was still in close contact with its borrowers, particularly after last month’s events, and said that Auros was experiencing “short-term liquidity problems due to no FTX money”.
While Auros, algorithmic trading, and stock market company, has yet to respond to M11 Credit’s statement, Maple Finance itself revived the thread. Credit M11 also explained that a missed payment does not mean that the loan is ineligible. Instead, the missed payment triggered a “5-day grace period according to the smart contract.”
This means that Auros has until December. 5 to pay late fees before being declared in default.
According to Maple Finance’s official YouTube video, if a default occurs, it could result in the repayment of the borrower’s money and/or Maple Tokens and USD Coin contributions.
USDC ($1.00) on the platform is used to cover any shortfalls from lenders. Enforcement proceedings may be brought in New York courts.
M11 Credit said it is working with Auros to issue a joint statement providing more information to lenders.
Cointelegraph reached out to M11 Credit and Auros for comment but did not receive a response by press time. Crypto Exchange FTX announced on Nov. 11 that he will file for bankruptcy after experiencing financial insufficiency and inability to honor withdrawals. The outbreak has spread to many other businesses. BlockFi declared bankruptcy on November 28. Galois Capital and New Huo Technology lost millions from the failure of FTX, and Nestcoin had to lay off employees due to its exposure to a failed exchange.
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