Why didn't Hodlnaut take another loan before default?

Hodlnaut (Hodlnaut Loan Histroy) has been approved on TrueFi, why didn’t it choose to take another loan to pay it’s employee or customer before declaring halting withdraw (News)?

1 Like

@heyturtle Thanks for the question. Unfortunately we can’t disclose specifics as we have confidentiality provisions in place with the borrowers. That said, while Hodlnaut, Celsius, Babel and others may have been approved for an initial loan, we did not approve them for subsequent loans because of risks observed in their respective business models that quite frankly did not sit well with us. Our loan agreements require ongoing compliance via reporting, covenants and other tools and triggers that allow us to actively monitor the borrower’s credit profile on a regular basis. Based on this ongoing analysis we elected not renew with each of these parties. I hope this is helpful.


Thanks for the explanation @RDharia, and for the ongoing work everyone does to keep the protocol as safe as we can!