According to Foresight News, a sudden alteration in the Loan-to-Value (LTV) parameters of the ezETH pool by Pac Finance, a lending project in the Blast ecosystem, has resulted in a $24 million liquidation. The change was reportedly made by a Pac Finance developer's wallet on April 11 at 9:06, as per the data shown on the Blast blockchain explorer. The developer invoked a function on their PoolConfigurator-Proxy contract, setting the LTV of ezETH at 60%.
The information was initially shared by kydo.eth, a developer at EigenLabs. The sudden change in the LTV parameters has raised concerns among the community, as it led to a significant liquidation of funds. The LTV is a critical factor in lending projects as it determines the maximum amount that can be borrowed against a collateral.
The incident underscores the potential risks associated with digital lending platforms and the need for transparency and stability in their operations. It also highlights the importance of regular monitoring and timely updates to prevent such incidents in the future.