Nostra, a loan protocol for Starknet, stopped loans for two liquid stacking tokens after identifying a “critical problem” with its price channels, said the Finance (DEFI) protocol.
March 24 Errors in the NOSTRA price channel inflated the submitted prices of XSTRK and SSTRK – two liquid derivatives of the Native SPRK Starknet token – up to about three times the actual value of tokens, Nostra, Nostra he said In the post on the X. platform.
According to ours “[s]UZ, inflated price food could cause unnecessary liquidation of safe positions, which caused users with healthy positions to be liquidated. ”
Nostra said that in response, the DEFI protocol turned off all further loans against the seating XSTRK and SSTRK.
Nostra also recommended that users with existing XSTRK and SSTRK deposits immediately withdraw the security.
“Because we do not have a secondary (failure) oracle to handle these resources, because they are not available, we are not able to fully prevent the performances of similar events in the future,” added Nostra.
“Our priority has always been and still is the security of existing user funds, and without a breakdown, the risk prevails over the benefits,” he said.
Nostra security tokens options. Source: Nostra
Related: Starknet to settle on Bitcoin and Ethereum to unify the chains
Starknet DEFI protocol
Starknet is a Layer-2 Ethereum scaling chain protected with the assist of zero-many (ZK) evidence. Launched his mainnet at the end of 2021, According to to Messari.
Has a total blocked value (TVL) of around $ 575 million, according to data from L2Beat.
The NOSTRA loan report belongs to larger DEFI projects operating in the chain. According to the website, TVL worth about $ 55 million.
At Nostra, users publish security with one token to borrow another token. The most popular DEFI protection tokens are Ether, SPRK and Stablecouins USDC (USDC) and Tether (USDT).
Starknet was designed by SPRK, which is to be erected in exchange for part of the revenues from the network fees, According to to his documentation.
XStk and SSTRK are, respectively, liquid stacking tokens issued, respectively by independent DEFI Endur and Nimbura protocols.
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