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Friday, February 3, 2023

Auros Global’s Missed DeFi Payment Has FTX Contagion To Blame

What is Auros Global? It is a trading and marketing company that works on an algorithm that helps in the fluidity of exchanges and token projects. Auros Global seems to have missed a 24,000 Wrapped Ether (wETH) repayment along with decentralized finance (DeFi) loan leading them to suffer from FTX contagion.

The fluidity manager on Maple Finance reveals on 30th November in a Twitter thread that the firm had failed to pay the wETH loan of 2,400 amounting to a total worth of approximately $3 million. As suggested by M11 Credit which stays close to its borrowers that Auros has been going through a short period of fluidity issues resulting in the FTX insolvency.

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However, the statement made by M11 has not been addressed by Auros Global which works on an algorithmic system of trading and is a company of market making. However, Maple finance has retweeted the thread.

Auros Global Firm To Be Declared As Defaults?

Missing the payment doesn’t put the load in default is a point that was stressed by M11. The missing payment as per the smart contracts unlocks a grace period of 5 days. This states that Auros is still not put into the category of defaults. The company has a new date of 5th December to save itself from making to the list of defaults. An official YouTube video of Maple Finance shows that if there’s an occurrence of a default, enforcement actions would be taken by the courts of New York. 

However, as claimed by the M11 credits, they have been working on the provision of a joint statement with Auros on the extended information to its lenders. Cointelegraph tried to reach out to Auros Global as well as M11 but received no comments or reply before the publication time. On 11th November Crypto exchange, FTX filed for bankruptcy due to a fluidity crisis and suffrage to honor withdrawal. On 28th November BlockFi too declared bankruptcy.

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