The Closure of Geist Finance
Geist Finance has made the decision to permanently close its operations following Multichain’s confirmation that the funds will not be recovered. This closure is also influenced by the lack of accurate valuation for Multichain assets due to issues with Chainlink oracles. Geist was a lending protocol on the Fantom network, allowing users to utilize bridged tokens such as USDC, USDT, BTC, and ETH as collateral for borrowing and lending.
Key Points:
- Geist Finance will not reopen after confirmation that the funds are unrecoverable.
- Chainlink oracles are providing inaccurate information about the value of Multichain assets.
- The oracles list the prices of non-bridged versions of coins, which are significantly higher than the Multichain assets’ value.
- The recent withdrawals on Multichain were the result of a hack, with the CEO being arrested by Chinese authorities.
- Arcadia Finance experienced a significant loss due to a code exploit related to untrusted input validation.
Hot Take:
The closure of Geist Finance highlights the risks and challenges faced by decentralized platforms in the crypto space. This incident serves as a reminder to crypto readers to exercise caution and conduct thorough research when engaging with lending protocols. The vulnerability of oracles and the possibility of hacks underscore the importance of security and trust in the crypto ecosystem.