In 2022 the Voyager incident’s aftereffects are still being felt by the cryptocurrency sector. Even if the bankruptcy processes for the crypto lender are still ongoing Ethos io intends to handle everything the proper way.
However it will be a difficult challenge to bring back Voyager’s original priorities of decentralisation transparency and customer safety.
Justification For Voyager’s Bankruptcy
When popular loan service Voyager declared bankruptcy earlier in 2022 the crypto market had a harsh wake-up call the company had suffered greatly.
As a result of a sharp decline in the price of crypto assets when the news broke in July of this year Sadly 2022 was a very negative year for Bitcoin Ethereum and other assets and nothing has really changed.
However Voyager’s problems began elsewhere the business was connected among other things to Three Arrows Capital a hedge firm that used loans .
To “gamble” on the value of cryptocurrency assets 3AC made the regrettable choice to stake a significant amount of money on TerraUSD (UST) the stablecoin.
Based on Terra that crashed at the same time as a result 3AC was compelled to make $670 million in Voyager borrowing defaults.
However the problem did not end there the provider’s original assertion that “funds are safeguarded.
By the FDIC” was thrown out the window when clients rushed to withdraw their money from Voyager.
Voyager kept cash deposits with Metropolitan Commercial Bank however FDIC insurance only covers a bank’s failure not that of its customers such as Voyager.
After receiving a cease-and-desist letter from the FDIC and Federal Reserve the firm was ultimately forced to retract such assertions.
Voyager The Right Way And Ethos 2.0
People who have followed Voyager since the beginning may remember that the lender utilised technology created by Ethos.
The founding members of the Ethos team still believe that the strategy has value even if the lender ultimately adopted a centralised solution and went bankrupt because.
It did not fully embrace decentralisation they want to develop the “correct version of Voyager which will cater to new and intermediate users who mostly rely on centralised exchanges.
Controlling your money is essential in the crypto world The best course of action though is to avoid intermediaries and Voyager fell short in that regard.
In order to assist these people and make self-custody simple and available Ethos 2.0 was created.
Users also have access to trading without having to sacrifice market access for security.
The engine of Ethos.
Ethos 2.0 also offers access to staking opportunities and the ability to create individual smart contracts as well as the best price execution.
Across decentralised exchanges bonuses for trading, and bonus tokens for learning about decentralised finance.
The Voyager Users’ Hand Of Peace
The goals of Ethos 2.0 address the many issues of Voyager in addition the team offers “recovery tokens” as a way to help those affected by the Voyager bankruptcy.
Cast off the shackles of centralised intermediaries and enter the decentralised world one billion ETHOS tokens have been set aside for the recovery process.
And an airdrop process for owners of VGX and Voyager creditors has just recently begun users of cryptocurrencies have been looking for alternatives ever before Voyager collapsed.
Despite the large number of choices only three protocols—Aave JustLend and Compound—represent more than $1 billion.
It remains to be seen if Ethos 2.0 will be able to join that list as the fourth participant. But it
exemplifies the decentralised strategy Voyager ought to have used.
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