Freeway, a yield strategy platform, has shed some light on its reasoning behind a suspension of services earlier this week.
On Oct. 26, Freeway posted an update explaining why it had taken action. Earlier this week, the DeFi yield platform cited unprecedented volatility in crypto markets and suspended its services.
The firm blamed a failed trading strategy for causing “substantial loss to be incurred due to unexpected market volatility.” It added that the problem was exacerbated by the rallying USD.
That volatility caused a “spike in margin utilization leading to the loss,” according to Freeway.
It added that the specific strategy was used in its beta Earn and Protect product and had stop losses in place.
