Nexus Mutual moves to divest, expects $3 million loss with Maple Finance

Nexus Mutual moves to divest, expects  million loss with Maple Finance
  • Nexus Mutual Expects $3M Loss on Maple Finance’s $36M Default Risk from Orthogonal Trading. Nexus Mutual is now trying to divest the wETH funds from the platform.

The ripple effect of companies embroiled in a crypto liquidity crisis after the FTX collapse continues, with Nexus Mutual now looking to divest from Maple Finance M11 Credit wETH group. Nexus appears to be losing about $3 million of its investment position in Maple Finance. The loss may have been minimized as Nexus was deployed in the ETH pool. Investors in Maple’s USDC pool saw up to 80% of the funds. ” Given the claims of financial misrepresentation, Orthogonal Trading has disappointed us.

FD

For this reason, Nexus Mutual expects a loss of 2,461 ETH (15.8% of our investment in Maple) on the orthogonal loans. We are supporting M11 Credit and Maple in taking the appropriate legal action to maximize recovery,” Nexus Mutual said in a statement to The Block. Nexus is trying to reclaim about 15,348 ETH it previously staked in the M11-WETH pool to see the return on its digital currency reserves, Etherscan records show. “The process of withdrawing the available funds has begun. There is a 10-day waiting period that is required. Nexus stated, “We anticipate recovering most of the money invested in Maple.

Maple Finance’s M11 lending arm, which underwrites the DeFi contracts and manages the ETH locked into the protocol, encountered a critical issue after it was revealed that the orthogonal trading funds were linked to FTX. The company would default on $36 million in loans to Maple Finance. Orthogonal’s default accounted for about 30% of the loans on Maple’s platform. Regarding Orthogonal’s default, the day-to-day operations and solvency of Nexus Mutual are unaffected, according to the company. “According to our current assessment, Auros loans have a high expected recovery rate, and Flow Traders loans are unaffected,” said Nexus.

Share to Social Media

Recent Articles

Join Our Newsletter