TechFlow news: Users of Pac Finance, a lending application in the Blast ecosystem, suffered $24 million in liquidations due to the developer unilaterally changing parameters for ezETH loans without prior warning. The official team has not yet released any announcement regarding this incident.
Pac Finance is a cryptocurrency lending application operating on the Blast network, allowing crypto holders to deposit assets and earn interest through capital lending. To ensure repayment, the platform only permits borrowers to withdraw a percentage of their collateral value—this ratio is known as the "Loan-to-Value" (LTV) ratio. While the development team has the authority to modify the LTV, such changes are typically made only after public notice. According to blockchain data from the Blast network, at 01:06 UTC on April 11, a developer wallet associated with Pac Finance’s PoolConfigurator-Proxy contract called a function that set the Loan-to-Value (LTV) ratio for Renzo Restaked Ether (ezETH) to 60%. As noted by smart contract developer Roffet.eth, this parameter change triggered "mass liquidations of leveraged ezETH farmers," as these borrowers were suddenly found to be in violation of the protocol's collateral requirements.
