According to a statement released by TrueFi on Sunday (Oct 9), Blockwater Technologies, a South Korean blockchain investment company, defaulted on a loan from TrueFi, a decentralized lending platform.
Issued a default notice to Blockwater Technologies earlier today, October 10, for failing to make a scheduled payment on its $3.4 million BUSD loan.
Over the last week, the TrueFi credit group has been attempting to work on an out-of-court settlement. This includes raising the borrowing rate and prolonging the maturity period.
However, they discovered that a court-supervised administrative procedure might result in a superior outcome for stakeholders. To date, this is TrueFi's first and only announced credit default. The credit group stated that it continues to remain vigilant and proactive in the current macroeconomic conditions.
This year, lending platforms have felt the heat of the crypto market meltdown. Massive withdrawals in Q2 resulted in the collapse of industry titans such as Celsius Networks and Voyager Digital.
TrueFi stated that it will continue to engage in active negotiations with Blockwater Technologies associates. The focus will be to maximize recovery for stakeholders and lenders. TrueFi's official announcement states:
Blockwater has made 8 loan repayment installments totaling $645,405 so far. At the time of the default, $2,967,458 was still due. The Blockwater default has no impact on TrueFi's USDC, TUSD, or USDT stablecoin lending pools, or any of TrueFi's capital market portfolios.
Unsecured Loans By TrueFi
TrueFi reported that it has originated $1.7 billion in unsecured loans. However, they have successfully recovered $1.5 billion in repayments on all 136 outstanding debts. As a result of its lending, the lenders receive $34.36 million in loans.
The TrueFi group stated that its loan book is healthy and that it has been actively pursuing loan renewals. Furthermore, under the pretext of TrueFi SAFU, they provide lenders with some default safeguards. The TrueFiSAFU manages a fund especially committed to aiding lenders affected by defaults dogecoin
They also feature staked TRU slashing, which allows the DAO to slash up to 10% of staked TRU for the benefit of lenders affected by a default.
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