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The protocol, which has three arrows under it, says that a large part of the treasury is not taken into account
A DeFi protocol backed by Three Arrows Capital says the fund controlled a large portion of its treasury The protocol has not received any communication from Three Arrows co-founders or the TPS Capital team since liquidation speculation began A decentralized finance protocol backed by the now-dissolving Three Arrows Capital has failed to account for a significant portion of its treasury. It has not heard from the Three Arrows team this week, according to the protocol's founder, who agreed to speak to Blockworks on condition of anonymity. The protocol closed its $3.5 million seed funding round led by...
The protocol, which has three arrows under it, says that a large part of the treasury is not taken into account
- Ein von Three Arrows Capital unterstütztes DeFi-Protokoll besagt, dass der Fonds einen großen Teil seiner Staatskasse kontrollierte
- Das Protokoll hat seit Beginn der Liquidationsspekulationen keine Mitteilung von den Mitbegründern von Three Arrows oder dem TPS Capital Team erhalten
A decentralized finance protocol backed by the now-dissolving Three Arrows Capital has left a significant portion of its treasury unaccounted for. It has not heard from the Three Arrows team this week, according to the protocol's founder, who agreed to speak to Blockworks on condition of anonymity.
The protocol closed its $3.5 million seed funding round led by Three Arrows in late 2021. As part of the round, the protocol received stablecoins in USD Coin and Tether, which the company could have either actively managed by lending on a decentralized market or opted to keep all or a portion of it with TPS Capital, Three Arrow's over-the-counter trading desk.
Three Arrows guaranteed 8% annual returns for this treasury management service. Due to the high returns, many Three Arrows-backed protocols chose to keep their funding round capital as well as portions of their own treasuries with Three Arrows, the founder said.
It felt like the safer option, said the protocol's founder, compared to the alternative - deploying the capital through risky smart contracts. The decision was further confirmed when it was unaffected by Terra's collapse, but now a significant portion of the protocol's treasury is unaccounted for.
Speculation about Three Arrows' bankruptcy began on Tuesday after a cryptic tweet by co-founder Su Zhu. The block Three Arrows later reported that he was struggling to find funds to repay lenders and other counterparties following major liquidations.
Protocol has not received any communication from Three Arrows co-founders Zhu and Kyle Davies or the TPS Capital team since June 10, the founder said.
The founder said the protocol is weighing its legal options and is in contact with two other Three-Arrows-backed protocols that face the same uncertainty about the state of their treasuries.
Another Three Arrows-backed protocol confirmed to Blockworks that the fund asked to manage its treasury, an offer the protocol rejected.
This is a developing story.
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The post Three Arrows-backed Protocol Says Major Chunk of Treasury Is Unaccounted For is not financial advice.