DeFi-based lending protocol Nostra has announced a halt on all borrowings due to alarming price swings in two tokens. The prices of xSTRK and sSTRK surged to three times their normal rates, prompting the platform to suspend new collateral deposits and advise users to liquidate their positions before conditions worsen.
Meanwhile, Circle, the company behind USDC, is set to enter the Japanese crypto market. After receiving approval to operate under European MiCA regulations, USDC has been recognized as the first dollar-backed stablecoin in Japan, a development that is expected to bring significant investments into the crypto sector within the country.
What happened with Nostra, and why is this good?
A price oracle error caused the abnormal spike in xSTRK and sSTRK. This mispricing risked triggering unnecessary liquidations, prompting swift action from Nostra to safeguard users. It highlights the importance of robust price feeds in the DeFi space and the need for reliable backup systems.
鈿狅笍 #Nostra #DeFi lending platform paused its lending services 馃搲 due to a price oracle error. The price of xSTRK and sSTRK was inflated by around 3x. This could lead to unnecessary liquidation risks. The platform advises users to withdraw assets.
Circle entering the Japan Crypto market
Japan’s Financial Services Agency has permitted the launch of USDC, which will be distributed starting March 26, 2025, through a partnership with SBI Holdings. Major exchanges including Binance Japan have committed to listing USDC, paving the way for its adoption in this key market.
Licensed exchanges will be listing USDC and stablecoins in Japan. pic.twitter.com/HGXwgbbl13
In summary, the event involving Nostra underscores a need for better oversight and reliability in crypto lending platforms, while USDC’s entrance into the Japanese market signals an exciting evolution in the region’s digital economy.
