Blockchain analytics firm PeckShield reported that the BSC deployment of the DeFi platform Cream Finance suffered from a liquidity crisis caused by allowing a credit user to borrow up to 107k $BNB limit without collateral.
The credit user borrowed 28.5k BNB on June 27 using a 1-out-2 multisig wallet. The address is from Cream Finance’s own Iron Bank, and the loan is actually from the credit line of the address, which means Iron Bank itself has certain collateral that is not revealed, according to Igor Igamberdiev, director of data research at The Block.
Users said that they began to distrust the protocol’s security when they noticed that the entire borrowing volume was higher than the deposit volume. Cream Finance had not provided a justification for this matter at the time of writing.
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