Nostra reduces collateral cap for sSTRK and xSTRK to zero

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According to Foresight News, the DeFi protocol Nostra Finance in the Starknet ecosystem reported discovering serious issues with the price information of xSTRK and sSTRK, leading to a price increase of approximately 3 times between blocks 1256310 and 1256360 on March 24th (for example, xSTRK rose from $0.1793 to $0.5897). This price surge could potentially cause unnecessary liquidation of originally secure positions, resulting in the liquidation of users' healthy positions. Due to the lack of available alternative oracles to support these assets, Nostra cannot completely prevent similar events.

To protect user funds, Nostra decided to immediately reduce the collateral cap of sSTRK and xSTRK to zero, meaning these assets cannot be used for new collateralization. They recommend that sSTRK and xSTRK users withdraw their collateral as soon as possible. Nostra will continue to monitor the situation and update subsequent steps, reassessing the reliability and feasibility of xSTRK and sSTRK price information.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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