Compound Resumes Partial Activity in USDC and USDS Lending Markets
Compound Lifts Lending Restrictions: Compound has resumed lending for USDC and USDS after a temporary halt due to liquidity issues related to Elixir's collateral, aiming to stabilize market operations following a $93 million loss.
Gauntlet's Influence: The decision to lift the pause was influenced by recommendations from Gauntlet, which highlighted vulnerabilities in deUSD and sdeUSD, prompting a cautious approach to risk management and governance discussions.
Market Stability: Despite recent fluctuations, USDC maintains a stable price around $0.99996, with minimal volatility over the past 90 days, reflecting ongoing market confidence amid broader tensions.
Focus on Risk Management: Insights suggest that enhancing governance and adjusting risk parameters are crucial for improving resilience against future liquidity shocks in the DeFi ecosystem.
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