Liqwid Announce Say Dem Go Pay Back Lenders After NIGHT Liquidations for Cardano

On October 21, Liqwid announce say lenders wey their positions absorb bad debt after the NIGHT liquidations for July and August go receive reimbursement. The core team for the Cardano lending protocol don complete snapshots of the affected users’ wallets and dem dey manage the reimbursement process.

Users no need do anything for this stage. Liqwid go publish instructions when time reach to open claims.

Reimbursement Go Cover Affected Liquidity Suppliers

This announcement concern users wey supply assets to Liqwid lending markets and wey their positions absorb losses from the unpaid debt. Na these suppliers dey provide the funds wey other participants dey borrow through the protocol.

The identified recipients na affected lenders, no be borrowers wey dem liquidate their collateral. Liqwid no list the individual markets wey involved or disclose how many wallets qualify.

The team describe the reimbursement as goodwill initiative wey Liqwid, Wanchain, and other contributors dey support. Dem no specify the total funding available or how much each participant contribute.

How Bad Debt Fit Affect Lending Positions

For collateralized lending, borrowers dey deposit assets as security for loans. If position no meet a market collateral requirements again, liquidation go allow make dem sell or seize the collateral to repay the outstanding debt.

Bad debt dey happen when the amount wey dem recover no reach to cover wetin person owe. Depending on how one protocol design be, the shortfall fit affect users wey supply assets to the market.

Liqwid announcement confirm say lender positions absorb bad debt after the NIGHT liquidations. E no provide technical account of the events, e no quantify the losses, and e no establish the cause.

The completed snapshots cover users wey supply assets for each affected market. The team never publish the snapshot timestamps or the method wey dem go use calculate individual reimbursement amounts.

[NEWSBREAK]

Claims Go Use the Sundae Rewards App

Eligible users go fit collect their reimbursement through the Sundae rewards claiming app wey people already dey use for ADA and LQ staking rewards. Liqwid core team go oversee the process, and the Sundae application go serve as the claim interface.

The announcement no identify the payout asset or talk whether reimbursement go fully cover the losses. E still no provide opening date or claim deadline.

Liqwid go announce the start of claims through their official Discord and X accounts. Until then, the team talk say affected users no need take action.