Compound has partially lifted its pause on lending markets for USDC and USDS, influenced by recommendations from Gauntlet. This decision follows a liquidity crisis caused by $93 million in losses linked to deUSD and sdeUSD, as the protocol seeks to stabilize its operations.
The protocol is resuming withdrawals while implementing stringent risk management strategies. Engagement with community governance is in progress to address risk factors and future stability measures, emphasizing the importance of adapting to the current liquidity challenges in the market.
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