- A sudden parameter change made by a developer wallet of the decentralized finance (DeFi) app, Pac Finance, caused users to suffer $24M in liquidations on April 11.
A sudden parameter change made by a developer wallet of the decentralized finance (DeFi) app, Pac Finance, caused users to suffer $24 million in liquidations on April 11.
While Pac Finance has replied to a post on X, stating that the team is aware of the issue, no official announcement has been made regarding the incident.
Giant swath of ezETH Liquidations on pac finance last night on blast, someone got tagged for $24m pic.twitter.com/uzqRX0UAUD
— Will Sheehan (@wilburforce_) April 11, 2024
Operating on the Blast network, Pac Finance is a cryptocurrency lending app that enables users to deposit funds and earn interest through lending their capital.
To ensure repayment, the app imposes a loan-to-value ratio (LTV), which restricts borrowers from taking out loans exceeding a certain percentage of their collateral.
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Normally, changes to the LTV are announced in advance and implemented by the development team.
Blast network’s blockchain data reveals that at 1:06 am UTC on April 11, a developer wallet executed a function on Pac Finance’s PoolConfigurator-Proxy contract, setting the LTV for Renzo Restaked Ether (ezETH) at 60%.
This sudden parameter change resulted in the liquidation of numerous ezETH leveraging farmers who were found to be in violation of the collateral rules for the protocol.
In response to the wave of liquidations, Pac Finance users vented their grievances and demanded explanations on the protocol’s Discord server.
The team’s Discord moderator acknowledged the concerns and stated their attempts to contact the team for clarification.
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