Liquity v2 Drops $17 Million After Stablecoin Pool Warning

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On February 13, a decentralized lending platform recorded a capital outflow of more than $17 million within 24 hours after advising users to withdraw from the Liquity v2 "yield farming" pool. The total value locked (TVL) of Liquity v2 decreased by 18%, to $69.6 million, from a record high of $84.9 million.

Liquity v2 includes three Tokens: Rocket Pool ETH (RETH), Wrapped Ether (WETH), and Wrapped Lido Staked Ether (WSTETH). Among these three Tokens, the amount of WSTETH withdrawn was around $11.3 million, while RETH and WETH were withdrawn $1.2 million and $4.5 million, respectively.

Lido, an Ethereum-based liquidity staking platform, has also announced that WSTETH holders have withdrawn their Capital from the Liquity v2 pool. The Liquity development team has announced that they have identified a potential issue that may have an impact and are investigating the potential impact. With high caution, Liquity v2 users are advised to close their positions in the "yield farming" pool.

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