Liquity v2 sees $17 million outflow following warning about stablecoin pools

On February 13th, according to Cointelegraph, decentralized lending platform Liquity saw over $17 million in funds withdrawn within 24 hours after suggesting users to exit its recently launched Liquity v2 stability pool. In addition, the total locked value (TVL) of Liquity v2 decreased by 18% from a historical high of $84.9 million on February 11th to $69.6 million.

The Liquity v2 pool contains three tokens - Rocket Pool ETH (RETH), Wrapped Ether (WETH), and Wrapped Lido Staked Ether (WSTETH). The outflow amount for WSTETH is approximately $11.3 million, while the outflow amounts for RETH and WETH are around $1.2 million and $4.5 million respectively. Ethereum-based liquidity staking platform Lido also notified wstETH holders to withdraw their investments from the Liquity v2 stability pool ("Earn").

Earlier yesterday, Liquity stated that its team had become aware of a potential issue that could affect the Liquity V2 stability pool ("Earn") and is currently investigating the potential impact. Out of an abundance of caution, Liquity V2 users are advised to close their positions in the stability pool ("Earn").