Decentralized lending platform Liquity has experienced significant outflows after warning users about its v2 stability pools.
Over $17 million has been withdrawn in the past 24 hours as concerns grow over an undisclosed potential threat, according to data from DeFiLlama.
The total value locked (TVL) in Liquity has decreased from $84.9 million to $67.84 million, primarily affecting the stability pools holding wstETH, WETH, and rETH. However, the v1 Liquity protocol remains stable without similar withdrawal patterns.
On February 12, Liquity v2 issued an urgent notice for users to withdraw assets from the stability pools. Lido also warned WSTETH holders to remove their funds from Liquity v2. Both platforms have not revealed the specific nature of the potential risk involved.
The announcement led to a quick reaction, causing liquidity to decrease as users sought safety for their funds. However, Liquity’s team assured the community that the platform is fully operational and all funds are secure. Key features like collateral withdrawals, stablecoin redemptions, and LQTY staking are functioning normally, and the native stablecoin, BOLD, is fully backed.
Launched on January 23, Liquity v2 introduced new features to enhance borrowing and lending. Users can now use multiple assets as collateral, including stETH, rETH, and WETH. It also introduced a dynamic interest rate system ranging from 0.5% to 1,000% and a stability pool that incentivizes users through interest earnings and liquidation rewards.
Meanwhile, Cryptocurrency scammers have targeted Phantom Wallet users with a new phishing tactic that uses deceptive pop-ups disguised as legitimate update requests. This sophisticated scam, uncovered by Web3 security firm Scam Sniffer, aims to drain wallets by tricking users into providing sensitive information. Fake pop-ups trick users into signing fraudulent “update extension” requests, leading to the disclosure of seed phrases and giving attackers full access to wallets. This method is more convincing than previous phishing attempts because it connects directly to legitimate Phantom wallets.
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