Pac Finance suddenly changed parameters, resulting in the liquidation of 24 million dollars

ChainCatcher news, according to Cointelegraph, users of the Blast network cryptocurrency lending application Pac Finance reportedly suffered a liquidation of $24 million on April 11 due to a sudden change in parameters by the developer's wallet. An official Discord administrator claimed they had notified the team about the issue. The official team has not yet issued a statement regarding this matter.

It is reported that Pac Finance allows cryptocurrency holders to deposit funds and earn interest by lending capital. To ensure repayment, the application only allows borrowers to take out loans equivalent to a certain percentage of the collateral value. This percentage is known as the "Loan-to-Value" (LTV) ratio. The LTV can be changed by the development team, but it is usually only executed after an announcement.

According to blockchain data from the Blast network, the Pac Finance developer wallet called a function on its PoolConfigurator-Proxy contract at 1:06 AM UTC on April 11, setting the LTV for ezETH at 60%.