Liquity v2 posts $17 million outflow after stability pool warning
Decentralized lending platform Liquity recorded more than $17 million in outflows within 24 hours after advising users to exit its recently launched Liquity v2 stability pool, Cointelegraph reported on Feb. 13. Additionally, Liquity v2's total lock-in value (TVL) dropped 18% to $69.60 million from its all-time high of $84.90 million on Feb. 11.
The Liquity v2 pool contains three tokens - Rocket Pool ETH (RETH), Wrapped Ether (WETH) and Wrapped Lido Staked Ether (WSTETH). Of these, the outflow amount of WSTETH is about $11.30 million, while the outflow amount of RETH and WETH is about $1.20 million and $4.50 million respectively. Lido, an Ethereum-based liquidity staking platform, has also notified wstETH holders to withdraw their investments from the Liquity v2 stability pool ("Earn").
This follows yesterday's news that Liquity said its team has been informed of a potential issue that could affect the Liquity V2 stability pool ("Earn") and is currently investigating its possible impact. Out of an abundance of caution, Liquity V2 users are advised to close their stability pool ("Earn") positions.