Nostra, a lending protocol on Starknet, has paused borrowing for 2 liquid staking tokens after figuring out a “vital problem” with its worth feeds, the decentralized finance (DeFi) protocol mentioned.
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 mentioned in a put up on the X platform.
In line with Nostra, “[s]uch an inflated worth feed might have triggered pointless liquidations of in any other case secure positions, leading to customers with wholesome positions getting liquidated.”
In response, the DeFi protocol has disabled any additional borrowing towards xSTRK and sSTRK collateral deposits, Nostra mentioned.
Nostra has additionally beneficial that customers with present xSTRK and sSTRK deposits withdraw the collateral instantly.
“Since we don’t have a secondary (fallback) oracle to help these belongings, as none can be found, we’re unable to totally stop related occasions from occurring sooner or later,” Nostra added.
“Our precedence has all the time been and continues to be to maintain present person funds secure and with no fallback oracle, the dangers outweigh the advantages,” it mentioned.
Nostra’s collateral token choices. Supply: Nostra
Associated: Starknet to decide 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, in keeping with Messari.
It has a complete worth locked (TVL) of roughly $575 million, in keeping with knowledge from L2Beat.
Lending protocol Nostra is among the many bigger DeFi tasks working on the chain. It has a TVL of roughly $55 million, in keeping with its web site.
On Nostra, customers put up 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 change for a portion of the community’s price revenues, in keeping with its documentation.
xSTRK and sSTRK are liquid staking tokens issued by impartial DeFi protocols Endur and Nimbura, respectively.
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