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Due to the FTX Contagion, DeFi Doesn’t Pay the Crypto Trading Company Auros Global

Auros is an algorithmic trading and market-making company that helps exchanges and token projects get the money they need.

After missing a principal payment on a 2,400 Wrapped Ether (wETH) decentralized finance (DeFi) loan, the crypto trading company Auros Global seems to be infected by the FTX virus.

Institutional credit underwriter M11 Credit, which manages liquidity pools on Maple Finance, told its followers on Twitter on November 30 that the Auros had missed a principal payment on the 2,400 wETH loan, which is worth a total of about $3 million.

M11 Credit says that it is always in close contact with its borrowers, especially after what happened in the last month. It also said that Auros is having a “short-term liquidity issue” because FTX went bankrupt.

Auros is a company that does algorithmic trading and market-making. They haven’t responded to M11 Credit’s statement yet, but Maple Finance has shared the thread.

M11 Credit has also said that just because a payment wasn’t made, it doesn’t mean that the loan is in default. Instead, the missed payment has set off a “5-day grace period according to the smart contracts.”

This means that Auros has until December 5 to make the late payment or be considered in default.

According to an official Maple Finance video on YouTube, if a borrower defaults on a loan, the collateral could be sold and/or the borrower’s staked maple tokens and USDC on the platform could be used to cover any shortfalls to lenders. The New York courts could also be used to enforce the law.

M11 credit says that it is “working with Auros” to give lenders a joint statement with more information.

Cointelegraph asked both M11 Credit and Auros for a comment, but neither of them got back to us before we went to press.

The crypto exchange FTX said on November 11 that it was going to file for bankruptcy because it had a liquidity crisis and couldn’t pay out withdrawals. Because of this, the problem has spread to many other companies. On November 28, BlockFi filed for bankruptcy.

Galois Capital and New Huo Technology have lost millions of dollars because FTX failed, and Nestcoin has had to lay off workers because it was connected to the failed exchange.

 

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