Blast ecology Pac Finance suddenly changed parameters and triggered the liquidation of US$24 million in user funds

Lending agreement Pac Finance suddenly changed parameters, resulting in the liquidation of US$24 million in user funds. Users complained and flooded Discord to ask for explanations from the project team. Some netizens even directly Bombarded Pac Finance as a "rogue agreement."

Pac Finance is a cryptocurrency lending protocol based on the Blast ecosystem that allows users to lend cryptocurrencies to earn interest income. To ensure that repayments proceed as planned, the protocol sets limits on the borrower’s loan amount. That is, it must not exceed a certain percentage of the value of the collateral, and this so-called ratio is called the "loan-to-value ratio (LTV)."

In principle, LTV can be changed by developers, and an announcement is usually made in advance, but this change was not notified to users in advance.

According to data on the Blast chain, around 9 a.m. yesterday (11th), Pac Finance’s developer wallet called a function on the “Pool Configurator-Proxy” contract to transfer Renzo Restaked Ether( ezETH)’s LTV is set at 60%.

According to smart contract developer Roffet.eth, because the project team changed parameters without warning, "a large number of leveraged borrowers were liquidated" and accused Pac Finance of acting arbitrarily.

Will Sheehan, founder of Parsec Finance, pointed out that after the LTV was changed, he estimated that borrowers lost about $24 million in collateral as users’ assets were automatically sold to repay debts.

In response to this "own incident", Pac Finance later pointed out on the social platform Describe how users will be compensated.

According to Pac Finance, in order to adjust LTV, the team entrusted a smart contract engineer to assist in the completion, and the liquidation threshold was accidentally changed without prior notification to the team.

Although Pac Finance has come forward to respond to what happened, users have already been scared to death. They left messages under the post saying: "Withdrawal of coins, goodbye", "Damn it's too scary", "Huge Caotai team (meaning: amateur team), stay away from such rogue agreements."

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