Loss of $27 Million in Pac Finance: How Developers Are Dealing with the Aftermath of the Incident
In the rapidly evolving world of Web3, facing unexpected challenges is a daily reality. Sometimes, these challenges can lead to severe consequences for projects and their users, with potentially substantial financial impacts. In today's news article, our team at Coinmooner wants to tell our readers about a recent incident that caused significant financial losses for participants of one of the popular protocols in the crypto industry - Blast Pac Finance.
Blast Pac Finance protocol suffered a massive $26.8 million in damage due to unexpected changes in the ezETH loan parameters caused by a developer wallet error. Despite the disaster's scale, protocol developers strive to act swiftly and effectively. They are already actively engaging with all affected clients, trying to calm the wave of outrage spreading rapidly across the network.
The developers promise to devise a comprehensive plan to address the problem swiftly. The Pac Finance engineering team has already modified the protocol's smart contract. According to the team's official social media posts, all necessary actions will be taken to prevent such incidents and protect user interests, demonstrating the developers' foresight and readiness for action.
The Pac Finance protocol lets cryptocurrency owners deposit funds and earn interest using their assets as collateral. To ensure repayment, the app limits the loan size relative to the collateral value, which is called Loan-to-Value (LTV). Developers can adjust the LTV, typically only after an official announcement.
Our team, Coinmooner, investigated an incident in which a community member named roffett_eth revealed that a developer's wallet triggered a function changing LTV and liquidation thresholds, posing a serious issue for the protocol. Pac Finance developers apologized, but it's unclear how or when the nearly $27 million in losses will be compensated. Victims are more concerned about getting their money back than finding answers.
Additionally, Blast Pac Finance admitted that the liquidation threshold was changed without prior notice, leading to this problem.
It's important to understand that even with constant financial protection monitoring in the Web3 industry, there's always a risk of encountering fraud and developer mistakes, resulting in fund losses. Coinmooner vows to track this incident and keep our readers informed. Remember to verify information from reliable sources to stay updated in this rapidly evolving and dynamic industry.
