Arc is proposing a 50% interest rate on a population that is in some cases physically unable to deleverage
So instead of helping to recover stolen funds by freezing hacked USDC, Arc decides the best course of action is to liquidate people in the USDC pool? First of all, players are still figuring out methods to freeze/claw back the stolen funds, secondly it’s unclear who will pay for/socialize the loss, thirdly some tokens are still frozen!
This is a crisis, not an economics lesson. LlamaRisk should not listen to Arc and punish everyone in the USDC pool just because Arc thinks its not an efficient market.
Hypocrisy of selective intervention and tone deaf.