A decentralized exchange just learned that its TRON trades still depend on one company's blocklist.
๐ What happened
Per CryptoSlate, four of THORChain's six TRON vaults, holding about 1.45 million $USDT, were blocklisted on Thursday. TRON trading and signing on THORChain halted for roughly two hours before swaps resumed.
๐ Why it matters
โข Those four vaults held 93% of the protocol's TRON USDT, so one freeze stopped a whole route
โข THORChain co-founder Chad Barraford said the team got no warning and did not know why it happened
โข Spreading signing power across validators does not remove an issuer's ability to freeze the token itself
๐ What to watch
โข Whether Tether explains the action; one researcher believes the vaults were caught in a wider blocklist of about 30 wallets
โข The counterpoint: freezing tools also help recover stolen funds, and Tether is using them right now in the Ledger reseller case
๐ฌ Should a decentralized protocol rely on a stablecoin that can be frozen?
#Stablecoins #DeFi
๐ What happened
Per CryptoSlate, four of THORChain's six TRON vaults, holding about 1.45 million $USDT, were blocklisted on Thursday. TRON trading and signing on THORChain halted for roughly two hours before swaps resumed.
๐ Why it matters
โข Those four vaults held 93% of the protocol's TRON USDT, so one freeze stopped a whole route
โข THORChain co-founder Chad Barraford said the team got no warning and did not know why it happened
โข Spreading signing power across validators does not remove an issuer's ability to freeze the token itself
๐ What to watch
โข Whether Tether explains the action; one researcher believes the vaults were caught in a wider blocklist of about 30 wallets
โข The counterpoint: freezing tools also help recover stolen funds, and Tether is using them right now in the Ledger reseller case
๐ฌ Should a decentralized protocol rely on a stablecoin that can be frozen?
#Stablecoins #DeFi