THORChain suspends Bitcoin, ETH lending amid impending “deadchain”

THORChain suspended its Bitcoin and Ethereum lending and savings programs on January 23 to prevent liquidity crunch and debt restructuring.

This decision was made to protect LPs and maintain network stability. Swaps will continue to operate normally, and the pause will last 90 days to develop a stability plan.

Community response
THORChain 's decision to suspend its programs has been controversial in the cryptocurrency community, with some concerned about the protocol's financial health, while others are optimistic about its recovery.

JP.THOR members believe the protocol can repay its debts after restructuring, while TCB warns that THORChain's large debts , if not resolved, could lead to collapse.

TCB compared THORChain’s situation to “ Chapter 11 bankruptcy ” and proposed restructuring as the best solution. Two options were presented: refund $75 million to the first exits, or preserve the network value to generate $200 million in return capital.

RUNE price dropped more than 30% to around $2 following this announcement.