The protocol with three arrows states that a large part of the treasury is not taken into account

The protocol with three arrows states that a large part of the treasury is not taken into account

A decentralized financial protocol that is supported by the now dissolving Three Arrows Capital has not covered a significant part of his state treasury. According to the founder of the protocol, who agreed to speak with block works on the condition of anonymity, it didn't hear from the Three Arrows team this week.

The protocol completed its seed financing round of $ 3.5 million under the direction of Three Arrows at the end of 2021. As part of the round, the protocol received stablecoins in USD Coin and Tether, which the company could either have actively managed by lending it in a decentralized market, or would have decided to keep everything or part of it at TPS Capital, the out -of -the -counter retail switch from Three Arrow.

Three Arrows guaranteed 8 % annual return for this treasury management service. Due to the high returns, many of Three Arrows decided to keep their financing round capital as well as parts of their own treasurer at Three Arrows, the founder said.

It felt like the safer option, said the founder of the protocol compared to the alternative - the use of capital by risky smart contracts. The decision was further confirmed when it was not affected by the collapse of Terra, but now a considerable part of the protocol's treasury is not taken into account.

Speculation about the bankruptcy of Three Arrows started on Tuesday after A cryptic tweet by co-founder su zhu. later Three Arrows reported that he tried to find funds to repay lenders and other counterparties for larger liquidations.

The protocol has not received a message from the co -founders of Three Arrows, Zhu and Kyle Davies, or the TPS Capital team since June 10.

The founder said that the protocol weighed up his legal options and that two other protocols supported by Three-Arrow were in contact with the same uncertainty about the condition of their treasury.

Another protocol supported by Three Arrows confirmed to block works that the fund asked to manage its state treasury, an offer that the protocol rejected.

This is a developing story.

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The article Three Arrows-Backed Protocol Says Major Chunk of Treasury is unaccounted for is not financial advice.