Alameda liquidators just lost $72,000 on a DeFi lending platform while trying to recover funds for creditors, analytics firm says
It hasn't been easy for the team overseeing FTX's bankruptcy to recover funds to pay back the failed exchange's many creditors.
The latest hiccup? Getting turned around in a decentralized finance protocol that resulted in the accidental loss of $72,000 that can no longer be used to pay anyone back.from blockchain analytics firm Arkham Intelligence said. Essentially, liquidators have been trying to consolidate assets from Alameda into a single wallet to simplify managing its holdings. As the team was trying to move funds and exit positions, they accidentally liquidated themselves on Aave, a DeFi lending protocol.
DeFi protocols allows users to borrow and loan tokens without centralized intermediaries. These platform and tools are often difficult to navigate because they have poor user interface design and haven't been tested at a large scale. "When positions are forcibly closed on AAVE, a penalty is also slashed from the liquidated collateral," Arkham Intelligence said.
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