The Algorand Foundation declared having $35M exposure to Hodlnaut (a troubled lender of cryptocurrency that has suspended the consumer withdrawals the previous month) in USDC. The respective figure denotes lower than three percent of the assets in the possession of Algorand Foundation, as mentioned by the company. The platform added that the respective exposure does not cause any liquidity or operational issues.
Algorand Takes a $35M Exposure to Hodlnaut
According to the mission of the platform, the Foundation added, they occasionally invest a part of their additional treasury capital to produce yield to further develop the ecosystem of Algorand, and the investment of the respective funds is to accomplish that objective, as disclosed by the foundation on Friday. The client withdrawals were halted by Hodlnaut on 8th August at the time of the liquidity issues.
The venue went through considerable losses due to the failure of the Terra ecosystem. Nearly $317m worth of TerraUSD (UST) – the stablecoin that collapsed – had been parked by Hodlnaut in Anchor Protocol to provide its consumers with enormous yields. In May this year, UST (the stablecoin of Terra) suddenly witnessed a failure in its dollar peg, paving the way toward the losses of approximately $189.7M on Hodlnaut, as the affidavit puts it.
In the words of the Algorand Foundation, it is looking toward the entirety of the legal solutions to increase the recovery of assets from Hodlnaut. As witnessed on 29th August, the nominees of Algorand, Aaron Loh, and Angela Ee of EY Corporate Advisors, will play the role of the provisional judicial managers for Hodlnaiut, according to the foundation.
The blockchain network (which is based on layer-1) declared to implement State Proofs to the mainnet thereof, with the launch of trustless communication among diverse blockchain protocols. The respective upgrade additionally elevated the processing speed of Algorand to six-thousand transfers per second.
In this upgrade, there are unique instruments provided for the developers along with the chain randomness abilities dealing with Decentralized Applications (DApps) operating on Algorand. The position of on-chain randomness is that of the main characteristic of the pure proof-of-chain (PPoS) consensus of Algorand, permitting the random selection of the validators notwithstanding the staked ALGO tokens’ respective amounts.
Algorand Sees a Crucial Upgrade near The Merge
Recently, a post was published by Algorand on Medium in which it categorized the State Proofs as the cryptographic proofs enabling the other blockchains’ DApps to trustlessly validate the transfers on Algorand. Along with this, the very upgrade lets the platform steadily link to diverse blockchain networks while requiring no mediator. The connectivity and interoperability across the chains have chiefly been driven on the behalf of the cross-chain validator networks and bridges, by which several exploits of great scale have been experienced recently.
The upgrade of Algorand is considered to be in-time as it has taken place in the wake of Ethereum’s transition to proof-of-stake consensus through the Merge upgrade. The impending Merge is to occur in the next weeks. The PoS transition of Ethereum will result in a huge increase in the network’s scalability as well as operability.
