It is reported that Pak Finance has suddenly lost 24 million dollars due to a change in measurement

Decentralized financial (diff) app Pack Finance users were reportedly hit with $24 million in leaks. The group's Discord admin said they reported the problem to the group. However, at the time of publication, they have not yet disclosed anything about the incident.

Pac Finance is a crypto lending app that runs on the Blast network. It allows crypto holders to deposit money and earn interest by lending their capital. The app allows borrowers to take out a loan equal to a percentage of the value of the collateral to ensure repayment. This percentage is called the “loan-to-value ratio” (LTV). LTV may be changed by development team but this will be done only after notification.

According to Blast Network's blockchain data, the developer wallet completed the transaction on Pac Finance's PoolConfigurator-Proxy contract on April 11 at 1:06 am UTC, making the LTV for Renzo Restacked Ether (ezETH) 60%.

According to smart contract developer Roffet.eth, this parameter change “resulted in the loss of many ezETH beneficiary farmers” because these borrowers were now found to be violating the protocol's collateral rules. Roffett called the scale change “arbitrary” because it was allegedly done without warning.

Will Sheehan, founder of Parsec Finance, criticized the change as “seemingly without warning”. As a result of this change, Sheehan estimated that borrowers lost about $24 million in collateral as they immediately sold their property to pay off their loans.

Related: Curve (CRV) price hits 1-year low

In response to the loss of liquidity, Pak Finance users took to the protocol's official Discord server to complain and demand answers. In response, the group's Discord moderator Bountydreams announced that they were trying to contact the group for an explanation. At 1:55pm, they said they had not yet received any response.

Bulk liquidity is a frequent problem for traders who borrow cryptocurrency or cash. However, they usually occur not because of protocol changes, but because of sudden changes in cryptocurrency prices. On April 2, more than $165 million was poured in when a flash of used bitcoin traders occurred. On April 9, another $110 million was released in Bitcoin positions when the price suddenly increased.

This is a developing story, and more information will be added as it becomes available.