Nostra, a lending protocol on Starknet, has paused borrowing for 2 liquid staking tokens after figuring out a “important concern” with its price feeds, the decentralized finance (DeFi) protocol stated.
On March 24, errors in Nostra’s price 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 said in a publish on the X platform.
In response to Nostra, “[s]uch an inflated price feed might have brought about 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 in opposition to xSTRK and sSTRK collateral deposits, Nostra stated.
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 consumer funds secure and with no fallback oracle, the dangers outweigh the advantages,” it stated.
Nostra’s collateral token choices. Supply: Nostra
Associated: Starknet to settle 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, according to Messari.
It has a complete worth locked (TVL) of roughly $575 million, in accordance with data 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 accordance with its web site.
On Nostra, customers publish 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 trade for a portion of the community’s price revenues, according to its documentation.
xSTRK and sSTRK are liquid staking tokens issued by unbiased DeFi protocols Endur and Nimbura, respectively.
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