Crypto trading firm Auros Global misses DeFi payout due to FTX contagion

Auros is an algorithmic trading and market-making company that provides liquidity for token exchanges and projects.

Crypto trading firm Auros Global appears to be suffering from FTX contagion after it missed principal repayment of a 2,400 Wrapped Ether (wETH) decentralized finance (DeFi) loan.

Institutional credit underwriter M11 Credit, which manages the liquidity pools on Maple Finance, told followers in a November 30 Twitter thread that the Auros had missed a principal payment on the 2,400 wETH loan, which is worth a total of around $3 million.

M11 Credit says it is still in close communication with its borrowers, especially after the events of the past month, and said Auros is experiencing a "short-term liquidity problem due to the insolvency of FTX ".

We remain committed to providing transparent updates wherever possible, and are working with Auros to provide a joint statement that provides additional information to lenders.

If you have any questions, do not hesitate to contact us at m11credit@maven11.com

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While Auros, an algorithmic trading and market-making firm, has yet to respond to M11 Credit's statement, the thread was retweeted by Maple Finance itself.

M11 Credit also pointed out that a missed payment does not mean the loan is in default. Instead, the missed payment triggered a "5-day grace period as per smart contracts".

This means that Auros has until December 5 to make the late payment before being declared in default.

According to an official Maple Finance Youtube video, if a default occurs, it could result in the liquidation of the borrower's collateral and/or the use of Maple and USDC tokens on the platform. -form to cover any shortfall from lenders. Enforcement actions could also be pursued in New York courts.

M11 credit says it is "working with Auros to provide a joint statement that provides additional information...