Auros Global Blunders DeFi Payment; FTX Collapse Repercussions

• Auros Digital is under debt of 8,400 wETH of MAPLE FINANCE. 

Auros Global, a crypto trading platform, seems to face a liquidity problem after the collapse of the giant crypto exchange FTX.    

According to the official tweet of M11 Credit, Auros Global borrowed 2,400 wrapped ether(wETH)worth about $3 million from Maple Finance(credit pool), a decentralized finance lending platform.   

M11 quoted in its tweet that “Auros is experiencing a short-term liquidity issue as a result of the FTX insolvency. This does not mean the loan is in default. We are working with Auros, who have acted promptly and responsibly.” 

FTX collapse has troubled several independent firms like BlockFi and Genesis Global Capital, and according to some reliable reports, more than 50 companies have filed for bankruptcy after the FTX collapse.    

Earlier this month, Alameda Research, an FTX exchange or FTX groups subsidiary, filed for bankruptcy protection, and the company’s Chief Executive Officer has also resigned from his position.

BlockFi and its eight subordinates filed for bankruptcy protection on November 28 in New Jersey, quoting the fall of FTX. FTX, in June, got an alternative to purchasing BlockFi as a segment of a $400 million bailout of BlockFi. 

According to data from the official website of MAPLE FINANCE, Auros Global still has to repay 8,400 wETH loans to MAPLE. The data also states that Auros Global borrowed 7,500,000 USDC from Mapple Finance on November 27, 2022.   

 A credit-facility-as-a-service platform called Maple Finance announced on October 2, 2022, that it had established a brand-new $300 million lending facility for troubled Bitcoin miners.

It is clearly understood that crypto miners who are having trouble making a profit in the bear market can now borrow money. However, borrowing funds to continue operating will cost miners up to 20% for that service.

Even though Maple behaves, looks, and acts like a bank, it is not. On the other hand, Maple is a lending-specific web service that enables businesses to pool funds and locate borrowers. It is not a financial institution but rather a technology platform.

The website of Mapple Finance has displayed a message for its users informing that “There is no direct exposure to Alameda, Borrower exposure to FTX is limited. The loan book has been further de-risked from second-order effects and withdrawals are expected to process without delay.” 

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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