Pac Finance suddenly changed parameters, angering the community!

Ritu13

Did you hear about it? Pac Finance, a DeFi lending protocol on the Ethereum blockchain, got into big trouble! They suddenly changed some parameters without authorization, resulting in significant losses for users, and the entire community was outraged!

Pac Finance is a lending application where users can deposit funds and then borrow them to earn interest. However, to ensure repayment, they have a rule that borrowers can only borrow a certain percentage of the collateral value, known as the Loan-to-Value ratio (LTV). And this LTV can be changed by the development team, but usually, they implement changes after announcing them. But just a few days ago, reports said that a developer wallet called a function in Pac Finance in the early hours of the 11th, changing the LTV for Renzo Restaked Ether (ezETH) to 60%.

As a result, a large number of leveraged ezETH trades were liquidated! Because these borrowers suddenly violated the collateral rules of the protocol. You know, this is not a small matter, it even led to the liquidation of a leveraged liquidity mining whale! Of course, some people in the community were not happy about it. They criticized this behavior of changing parameters without warning. A smart contract developer named Roffet.eth came out and criticized the action, saying it was irresponsible. He said that such parameter changes directly resulted in users losing about $24 million worth of collateral! This caused a huge uproar! Pac Finance founder Will Sheehan also expressed his dissatisfaction and criticized this behavior. He felt that such parameter changes seemed to have occurred without any warning, which was unacceptable!

Then, an official response came. Pac Finance users flooded into the official Discord server to complain, demanding a response from the team. Finally, this morning, Pac Finance's official Twitter responded: they said they had noticed the issue and were actively reaching out to affected users, preparing to develop a solution. They explained that they did have plans to adjust the Loan-to-Value ratio (LTV), but they didn't expect the liquidation threshold to be changed unexpectedly without prior notice to the team. They also said that in the future, they would establish a governance contract/time lock and forum to ensure that all upgrades could be discussed in advance.

977Iti

This is also very exaggerated, isn't it?

Yamini003

It's worth paying more attention to news like this.

Iti9

Such mistakes must be taken seriously; with so many users suffering huge losses, we can't just let it go.