D2 Finance has publicly challenged Tori Finance’s handling of the funding gap that followed the Term Finance incident, laying out five specific questions in a post on X. The derivatives strategy protocol asked why Tori Finance minted 250,500 trUSD in advance instead of using existing USDC reserves directly, where the collateral used for that mint came from, and why the other half of the funds appeared to come from a Kraken hot wallet. D2 Finance also pointed to Tori Finance’s transparency page, which it said showed a buffer of only about $17,600, or 3 basis points, a figure it argued was far below the scale of the incident. It also questioned how Delta Neutrality was being verified, as well as the structure of higher-yield money market positions and the hedging approach. Earlier, the RockawayX Tori USDC Vault was affected in the Term Finance governance vulnerability incident, with losses of about 454,000 USDC. RockawayX and Tori Finance later said the loss had been fully covered.
D2 Finance said in a post on X that it has five public questions about how Tori Finance moved to cover the shortfall after the Term Finance incident.
The derivatives strategy protocol questioned why Tori Finance chose to mint 250,500 trUSD in advance rather than use existing USDC reserves directly. It also asked where the collateral backing that mint came from, why the other half of the funds came from a Kraken hot wallet, and why Tori Finance’s transparency page showed a buffer of only about $17,600, or 3 basis points, despite the scale of the incident. D2 Finance also raised questions about Delta Neutrality verification, higher-yield money market positions, and the hedging method.
Loss tied to the Term Finance governance vulnerability
Earlier, the RockawayX Tori USDC Vault was affected in the Term Finance governance vulnerability incident, suffering losses of about 454,000 USDC.
RockawayX and Tori Finance later said the loss had been fully covered by them.
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