In light of recent events regarding the FTX meltdown we want to update our community and reassure that:.
15 Nov 2022, 17:04
In light of recent events regarding the FTX meltdown we want to update our community and reassure that:
- QiDao does not hold any assets on FTX.
- MAI is 0% backed by FTT.
- The protocol's exposure to FTX is non-existent.
- QiDao does not have access to users assets. Each vault is represented by a NFT owned solely by users, no one can lend/borrow from anyone else but themselves.
- As a consequence of the above; the protocol doesn't manage any user funds and can't invest them elsewhere so they can be retrieved at any time after repaying their loans.
That being said, we've all seen how sudden big market movements can impact the whole crypto ecosystem and we've taken precautions to minimize potential effects on users and the protocol:
- A few days ago it came to our attention that many FTX assets, including MATIC, were being market sold within a short timeframe. Following QIP089 we withdrew QI-WMATIC liquidity to prevent significant Impermanent Loss to the protocol owned liquidity from impending sales of MATIC. This PoL has been already redeployed.
- The protocol has been closely watching risk parameters and burning debt ceilings across all collaterals as repayments happen to keep them close to 100K maximum.
- We continue to build and release features to make it easier for our users to identify when their vaults are close to liquidation risk and strongly encourage our community to prevent sudden market downtuns by adding more collateral or partially repaying debt on their vaults. Users can now watch the liquidation line dynamically adjust as they repay or borrow MAI.
Stay safe!
Same news in other sources
115 Nov 2022, 17:04
November general update for QiDao!
November general update for QiDao.
November general update for QiDao!
https://medium.com/qidao-weekly-updates/qidao-general-update-november-caffd4ebc062