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