Auros Global is experiencing liquidity problems and is unable to repay short-term loans originated on Maple Finance and Clearpool lending platforms.
Credit pool manager alias M11 Credit informed on Twitter that the cryptocurrency trading company Auros Global is experiencing liquidity problems and has not fulfilled the terms of the loan agreement. According to Maple Finance, Auros has an outstanding debt of 10,400 wETH (about $13 million), as well as $7.5 million in USDC stablecoins.
According to the manager, they are in constant contact with the Auros team and suggest that the delay in payment was the result of a larger problem, namely the insolvency of the FTX cryptocurrency exchange. M11 Credit said that it does not yet consider the issued loans to be problematic, since, under the terms of the loan, Auros has additional time to repay current loan obligations until December 5th.
At the same time, Auros has $2.4 million in overdue debt across two separate loan pools, according to lending platform Clearpool. At the same time, interest on arrears is calculated at an increased rate of 23% per annum. Earlier, ratings firm Credora downgraded Auros’ credit rating to C, which is one notch ahead of default.
Loans issued by credit pools are unsecured. This means that the borrower does not pledge any assets against the loans and provides them only with his good financial history. If Auros fails to find a way out of the crisis, these lending platforms will be left with bad debts and liquidity providers will face losses.
Recall that in September, DeFi lender Maple Finance, together with the financial company Icebreaker, launched a $300 million investment fund for companies mining bitcoins.
Source: Bits
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