Multiple users on social media claimed they had been liquidated after a Pac Finance admin wallet allegedly changed the parameters for ezETH loans without warning.
Users of the decentralized finance (DeFi) app Pac Finance have reportedly suffered $24 million in liquidations on April 11 because of a sudden parameter change made by a developer wallet, according to multiple reports on social media and the app’s official Discord server. The team’s Discord admin claims they have notified the team of the problem. However, at the time of publication, they have not yet made an announcement regarding the incident.
Pac Finance is a crypto lending app that runs on Blast network. It allows crypto holders to deposit funds and earn interest by lending their capital. To ensure repayment, the app only allows borrowers to take out loans equal to a percentage value of their collateral. This percentage is called the “loan-to-value ratio” (LTV). The LTV can be changed by the development team, but this is usually only done after an announcement is made.
According to Blast network’s blockchain data, a developer wallet called a function on Pac Finance's PoolConfigurator-Proxy contract at 1:06 am UTC on April 11, setting the LTV for Renzo Restaked Ether (ezETH) at 60%.
