The cross-chain decentralized liquidity protocol, Thorchain, halted its savings and loan services on Thursday, depriving ThorFi users of withdrawing Bitcoin, Ethereum, and other assets from these services. Approximately $111 million in digital assets have been borrowed through this protocol, with $98 million locked in savings accounts. This includes $57 million in Bitcoin and $16 million in Ethereum. The issue lies in users being unable to withdraw their assets as the network faces a $200 million debt. Network operators have frozen these assets to prevent a financial disaster. Currently, the network is fulfilling its loan commitments by minting and selling RUNE to liquidity pools. However, the increase in RUNE supply and decrease in price have complicated the situation. The price of RUNE dropped by 29% on Friday, reaching $2.08, the lowest since October 2023.
