THORChain is in a debt repayment crisis. The verification nodes have suspended network operations and are voting on the reorganization plan.
On January 24th, according to X user TCB, THORChain is currently in a state of insolvency. Data shows that THORChain's current liabilities include $97 million in borrowing (ETH and BTC) and approximately $102 million in savings and synthetic assets, with only $107 million in external liquidity available. TCB stated that THORChain's borrowing obligations are fulfilled by minting and selling RUNE tokens, which has led to high reflexivity and further exacerbation of the problem. After repaying $4 million in RUNE debt yesterday, the protocol owes several million more RUNE. Validation nodes have temporarily suspended network operations and are voting on restructuring proposals.
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