Algorand Foundation has disclosed to have an exposure of nearly $35 million (in the stablecoin USDC) to Hodlnaut (a crypto lender based in Singapore). As per Algorand Foundation, the respective exposure is not more than 3% of the venue’s assets as well as the extra revenue. In this way, it is improbable to have an impact in the form of liquidity problems.
The platforms also elaborated the causes for it to put the funds thereof in Hodlnaut, stating that it is included in its grand objective. The yields gathered from the respective move will expectedly be consumed by Algorand for the improvement of the firm’s ecosystem.
$35M Exposure Gained by Algorand to Hodlnaut
The major proportion of the respective investments was based on the locked deposits (which were short-termed), and the withdrawals’ suspension by Hodlnaut was the cause behind the inaccessibility of those investments, as stated by the platform. In the meantime, the foundation revealed that it has an eye on the entirety of the legitimate ways to get back the funds.
Included among those endeavors resulted in the Algorand Foundation nominees’ appointment as the temporary judicial managers being responsible to notice, preserve, as well as shield the assets of Hodlnaut till the start of further action by the court. Algorand Foundation is additionally exposed to another company named Three Arrows Capital (a bankrupt hedge fund in the crypto space).
As per the court filings, the platform participated in a single OTC trade with 3AC, however, the lockup terms were infringed by the hedge fund. The position of Hodlnaut was that of a crypto company influenced by the historic crash of Terra (LUNA). The respective collapse led Hodlnaut to dismiss the withdrawals, as of 8th August. The court filings brought to the front that almost $317M had been possessed by Hodlnaut in Terra USD (UST) in advance of the collapse.
Network of Algorand Gets Upgraded
Up to $189.7 million was lost by the venue in that crash and an Interim Judicial Management is being gone through by the venue at the moment. Recently, an upgrade has been carried out by Algorand Network to enhance the capacity of the company to a significant extent. As per the formal declaration, the cross-chain transfers are made possible by the State Proofs (an addition made in the latest upgrade of Algorand) with no validator networks or bridge requirement.
