Bloomberg Law
Sept. 12, 2022, 6:09 AM

Ethereum Upgrade Brings Risks for Ailing Crypto Lender Hodlnaut

Suvashree Ghosh
Suvashree Ghosh
Bloomberg News

Struggling cryptocurrency lender Hodlnaut warned of risks to its assets if a looming upgrade of the Ethereum blockchain known as the Merge stokes a bout of volatility in virtual coins.

Sharp moves in the prices of tokens linked to the Ethereum network could cause “smart contracts to automatically liquidate the assets,” the company said in a statement released on its blog on Monday.

Smart contracts are programs that automatically execute when certain conditions are met and are popular in blockchain-based decentralized finance applications, where Ethereum is the dominant network.

Big price swings after the Merge could spark liquidations as such ...