It’s interesting to see how liquidity on Moonwell reached zero before the news of the BASE drop was released (about a month earlier).
Therefore, there are currently 9 million GLMR on Moonwell that cannot be withdrawn because they were borrowed with collateral.
If anyone is still involved in this project, it would be necessary to have information or provide information to the related lending and borrowing platforms on how to manage this situation, otherwise on July 31, 9 million tokens will be blocked and lost.
1 Like
I am the most indicated person to provide an answer about this since I was a supplier at the GLMR market on Moonwell.
I will give some context, the GLMR market had a toxic debt, APY was 120% and interest to borrowers over 250%. This market was slowly healing since whales where trying to save it by selling at pumps and rebuying at dumps and this was helping the GLMR token too.
Then Anthias decided to set interest rates to suppliers to 0%, that is when all of us suppliers left the market and eventually liquidity was removed. As a consequence this the market is now dead and the people who stayed will never be able to remove their funds because no one is going to supply liquidity to get a 0% yield.
If you had funds there you can’t withdraw them since there is 0 liquidity it is unlikely someone will provide liquidity at the risk of getting trapped and getting a 0% yield.
This has nothing to do with the BASE migration, it is totally unrelated
What does the Moonbeam team say about this?