THORChain, an interchain settlement protocol, has paused bitcoin (BTC) and ether (ETH) withdrawals in its lending and savers programs to mitigate a potential insolvency risk. Network node operators implemented the 90-day pause to devise a strategy for addressing significant debts. While THORChain's lending program exclusively involves BTC and ETH, its saver vaults accommodate various assets. The risk of insolvency arises if loans and savers positions are settled simultaneously, particularly amidst declining market sentiment towards RUNE. Community sources report liabilities approaching $200 million, with around $107 million tied to liquidity pools that may trigger panic withdrawals from liquidity providers or RUNE holders. In response, validators have paused the network while discussions on a restructuring plan take place. Despite these developments, THORChain's main service—cross-chain swaps—remains operational without interruptions. Investors continue to monitor the situation closely.

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