Users of the Blast-based lending protocol Pac Finance lost $26.8 million due to a sudden change in the parameters of ezETH loans made by the developer's wallet. The founder of Parsec Finance announced this on his X (formerly Twitter). According to him, the largest liquidation amount was $23.9 million.
Giant swath of ezETH Liquidations on pac finance last night on blast, someone got tagged for $24m pic.twitter.com/uzqRX0UAUD
— Will Sheehan (@wilburforce_) April 11, 2024
Another community member under the pseudonym roffett_eth on X confirmed that the developer's wallet called a function that arbitrarily changed the Loan-to-Value (LTV) and liquidation threshold parameters.
The protocol team responded to the incident and stated that they have already contacted the affected parties.
Thank you for letting us know Will. We are aware of the issue and are in contact with the impacted users, actively developing a plan with them to mitigate the issue.
In our effort to adjust the LTV, we tasked a smart contract engineer to make the necessary changes. However, it…
— Pac Finance (@pac_finance) April 11, 2024
Source: Cryptocurrency
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