Nostra, a lending protocol on Starknet, has paused borrowing for 2 liquid staking tokens after figuring out a “crucial difficulty” with its worth feeds, the decentralized finance (DeFi) protocol stated.
On March 24, errors in Nostra’s worth feed inflated the reported costs of xSTRK and sSTRK — two liquid staking derivatives of Starknet’s native STRK token — to roughly thrice the tokens’ precise worth, Nostra said in a publish on the X platform.
In line with Nostra, “[s]uch an inflated worth feed may have induced pointless liquidations of in any other case protected positions, leading to customers with wholesome positions getting liquidated.”
In response, the DeFi protocol has disabled any additional borrowing in opposition to xSTRK and sSTRK collateral deposits, Nostra stated.
Nostra has additionally really useful that customers with present xSTRK and sSTRK deposits withdraw the collateral instantly.
“Since we don’t have a secondary (fallback) oracle to assist these property, as none can be found, we’re unable to completely forestall related occasions from occurring sooner or later,” Nostra added.
“Our precedence has at all times been and continues to be to maintain present person funds protected and with no fallback oracle, the dangers outweigh the advantages,” it stated.
Nostra’s collateral token choices. Supply: Nostra
Associated: Starknet to settle on Bitcoin and Ethereum to unify the chains
Starknet DeFi protocol
Starknet is a layer-2 scaling chain of Ethereum secured utilizing zero-knowledge (ZK) proofs. It launched its mainnet in late 2021, according to Messari.
It has a complete worth locked (TVL) of roughly $575 million, in response to data from L2Beat.
Lending protocol Nostra is among the many bigger DeFi initiatives working on the chain. It has a TVL of roughly $55 million, in response to its web site.
On Nostra, customers publish collateral in a single token to borrow in one other token. The DeFi protocol’s hottest collateral tokens are Ether, STRK, and stablecoins USDC (USDC) and Tether (USDT).
Starknet designed STRK to be staked in alternate for a portion of the community’s payment revenues, according to its documentation.
xSTRK and sSTRK are liquid staking tokens issued by unbiased DeFi protocols Endur and Nimbura, respectively.
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