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The DeFi community in the past few days has been talking about the position of a Fantom whale about to be liquidated and possibly lead to the collapse of this ecosystem.
On April 30, the DeFi community on Twitter is spreading the news that a Fantom whale is about to be liquidated and threatens all of the above projects.
Accordingly, a large investor in the Fantom ecosystem named “Roosh” earlier this year deposited $90 million in FTM money into the Scream lending platform on Fantom as collateral and borrowed money. This person then bought a lot of Solidly (SOLID) and Deus Finance (DEUS) tokens and locked them for 4 years.
Since the Andre Cronje drama leaving the DeFi industry and Solidly collapsed, the value of DeFi projects on Fantom and the FTM token has plummeted, causing the value of Roosh’s escrow assets from $90 million to drop to zero. $ 50 million and is in danger of being confiscated by Scream if not saved soon.
1/13 Well, well, well…here we are minutes to seconds away from the collapse of one of the worst L1’s $ftm Something I predicted a while ago when $solid wars went sideways. It’s a long story a https://t.co/VtmyWCHpDk
— ️ Alltheway08 ☠️🦜 (@alltheway08) April 29, 2022
The reason this could cause the Fantom ecosystem to collapse is because Scream would be forced to sell the FTM that Roosh collateralized to avoid losing money. The sale of FTM will both push down the price of this coin and cause other coins in the ecosystem to be affected as well.
As of noon on May 1, there were at least 6 times that Scream had to liquidate Roosh’s FTM assets to cover loan losses, reducing the whale’s assets from 59 million FTM to only 18 million FTM.
At the same time, the price of FTM fell from $0.9 on April 29 to $0.65 on the morning of May 1.
Fantom gas fees meanwhile surged to record levels as users sought to flee the ecosystem.
watafak fantom pic.twitter.com/KR3Rh6Kk4Z
— Yahya (@ya7ya) April 29, 2022
According to statistics of DeFi Llama, TVL on Fantom is now only 3.87 billion USD, down more than 40% compared to 1 month ago and divided 4 times since the peak of 12.8 billion USD was established in early March/ 2022, the time when Solidly was released.
Maybe you are interested:
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