Hodlnaut
BankruptLending · born 2019 · ✝ 2022
A Singapore yield platform sunk by its UST exposure.
Hodlnaut was a Singapore-based crypto lending platform offering high interest on deposits. It froze withdrawals in August 2022 after the Terra/UST collapse, having lost roughly $190M, and was placed under judicial management.
- Peak
- ~$190M loss
- Cause
- Bankrupt
- Year of death
- 2022
☠️ Cause of death
Hodlnaut had heavy exposure to UST and chased the Anchor yield; when Terra imploded, the losses left it insolvent. Investigations alleged misrepresentation of its exposure to users and regulators.
📓 Lessons left behind
- —Yield platforms that depend on one subsidized rate inherit its collapse.
- —Hiding the source of risk delays the reckoning, never cancels it.
- —'Conservative' marketing doesn't match UST-sized exposure.
🌱 The idea that survived
Transparent risk disclosure
The failure reinforced demand for platforms to disclose exactly where deposit yields and exposures originate.
#lending#ust-exposure#singapore#frozen-funds