Update on the "Apostro USDC" vault on Sonic
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Hi everyone,
Weβd like to share an important update regarding a liquidity issue affecting the Apostro USDC vault on Silo Sonic.
First, we want to make it clear that Apostro has never whitelisted xUSD in any of its products. This vault has indirect exposure through wstkscUSD (wrapped staked scUSD), which itself is linked to the xUSD market, currently facing low liquidity. When wstkscUSD was first whitelisted on Silo markets, it was considered the only stablecoin within the Sonic ecosystem without direct exposure to xUSD.
Key Points:
1. This issue is limited exclusively to the βApostro USDCβ vault on Sonic. All other Apostro vaults on Morpho, Silo, and Euler are 100% unaffected.
2. Over the past weeks, the risk team has caused the liquidity in these markets to gradually reduce from $2M down to the current $0.377M that is temporarily locked. Thanks to the timely actions, the impact on our vault is significantly less than that seen across the majority of other DeFi products involved in this event.
3. All remaining liquidity was removed from this market yesterday (before Stream Finance announcement) as a final precaution.
4. Weβre working closely with all relevant partners to support the recovery process and ensure a smooth resolution.
Weβll continue to share updates as new information becomes available.