Lybra Finance Burns 63,000 peUSD to Address Liquidity Issues Circle Mints 250 Million USDC on Solana for Enhanced Liquidity Whale Withdraws $201 Million in Bitcoin from Exchanges OM Token Collapse Results in 80% Value Plunge, $5 Billion Loss
1min read Lybra Finance, the issuer of the stablecoin PEUSD, has taken steps to address liquidity issues with its eUSD token. The protocol announced that it has burned 63,000 peUSD through a configuration contract, unlocking a corresponding amount of eUSD. This eUSD is now being sold on CowSwap at a fixed price of $1, with the price difference from the sale being used to support V1 recharge users' withdrawals. Users are advised to check and claim any remaining eUSD rewards in V1 and V2 during this period. The stablecoin PEUSD has been off-peg since September 2023, currently trading at $0.572, indicating ongoing challenges for the protocol.
Circle has expanded the availability of its stablecoin USDC on the Solana network by minting an additional 250 million USDC. This move is part of Circle's broader strategy to increase the utility and adoption of USDC across different blockchain platforms. The addition of USDC to the Solana network is anticipated to enhance liquidity and facilitate faster, more efficient transactions, benefiting both users and developers within the Solana ecosystem.
A significant transaction in the cryptocurrency market involved a whale withdrawing approximately $201 million in Bitcoin from major exchanges. This withdrawal was closely monitored by blockchain analytics firms and has sparked discussions about potential market movements and the impact on Bitcoin's price and overall market sentiment. The actions of large holders can significantly influence market dynamics, as their movements can signal confidence or concern about the future of the asset.
The collapse of the OM token, associated with the Mantra project, has been a significant event in the cryptocurrency community. The token's value plummeted by over 80% in a single day, resulting in a loss of approximately $5 billion in market value. This incident has raised questions about the stability and security of real-asset blockchain projects. The co-founder of Mantra, JP Mullin, addressed the issue in a podcast, expressing responsibility for the losses incurred by investors and the community. He emphasized the importance of transparency and continuous communication, promising full transparency and the launch of a buyback and burn program to support investors. Mullin also highlighted the challenges faced by the project, including large-scale liquidations on centralized exchanges and the impact of low liquidity during weekends. The incident underscores the need for robust risk management and communication strategies in the cryptocurrency industry.
