Liqwid Closes NIGHT Liquidation Debt, Sets November 2 for wanUSDC Claims
Suppliers in the other affected markets have already had their positions restored through loan repayment.
By SongMarketCap
Liqwid has closed the bad debt positions left by the July and August NIGHT liquidations. The Cardano lending protocol reported that every affected market except wanUSDC was made whole through loan repayment.
wanUSDC suppliers will receive a separate distribution, available to claim starting November 2.
Liqwid Restores Affected Lending Positions
Liqwid allows users to supply assets to lending markets, where borrowers can access funds by depositing collateral. Bad debt can arise when the collateral backing a loan is no longer sufficient to cover the amount owed.
Following the NIGHT liquidations, some suppliers’ positions absorbed losses from that debt. Liqwid’s latest update confirms that affected positions outside the wanUSDC market have been restored through loan repayment. Those suppliers do not need to claim a reimbursement.
The protocol described the closure of the remaining bad debt positions as the final step on its side of the resolution process.
wanUSDC Suppliers Will Receive a Separate Distribution
Liqwid identified wanUSDC as the exception because the market’s bad debt had been distributed across its suppliers. Their reimbursement will therefore be made through a separate distribution rather than through the loan repayments used for the other affected markets.
wanUSDC is a version of USDC bridged to Cardano through Wanchain. Users who supplied the asset to Liqwid’s wanUSDC market will be able to claim the distribution from Monday, November 2.
[NEWSBREAK]
Reimbursement Initiative Followed Wallet Snapshots
Liqwid first announced the reimbursement on October 21, describing it as an initiative supported by the Liqwid and Wanchain teams and other contributors. The team had completed snapshots of wallets supplying assets in each affected market and took responsibility for managing the process.
In its earlier announcement, Liqwid stated that users would claim reimbursements through the Sundae rewards application used for ADA and LQ staking rewards.