Binance today released an update that their Insurance Fund is running low on funds due to the recent high liquidation events. They have subsequently reduced interest payments on flexible accounts from 7% to as low as 2% and changed their liquid stake rewards to BNB payouts.
The official Binance post is here: https://www.binance.com/en/support/announcement/907318ffc70546feb9d61199302e4a70?ref=JLI1VBLA
A writeup has been posted here on Twitter along with potential consequences of this: https://twitter.com/ThomasDavies33/status/1400394138605047812
In short - at best, investors could face receiving much less interest than before (2% and below etc) - worst case, if another liquidation event is to happen - there is a real risk that investors could lose part of their savings.
Concerned that this could have severe consequences for savers/stakers on Binance - there is clearly not enough funds in the Insurance Fund to pay out if we had another liquidation cascade event. Could somebody shed more light on this?
[link] [comments]
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments