TechFlow news — In response to the liquidity crisis on BNB Chain, DeFi lending protocol Cream Finance stated that the incident resulted from the BNB Boosted Savings program launched by C.R.E.A.M. last year.
In July 2021, as a validator on BNB Chain, Cream Finance enabled liquidity providers to earn additional validator rewards by staking unused BNB from its lending pools into validator node voting. However, Binance recently withdrew its voting support for Cream Finance’s validator node. Cream Finance said it is now in the process of winding down the program to restore protocol health, which is expected to take seven days.
Earlier reports indicated that Cream Finance's deployment on BNB Chain faced a liquidity crisis, primarily due to allowing a user (0xE94f7a43d3fD2A159952a28B23D3A181564B7baA) to borrow 107,000 BNB without collateral. The address is a 1-out-of-2 multi-signature wallet. According to Twitter comments, one of the multi-sig signers belongs to the Cream deployer, suggesting the address may be controlled by the team.Original link
