DeFi and Stablecoin Cryptocurrency News: Nostra Halts Lending, USDC Arrives in Japan, Bullish?
The Decentralized finance lending network Nostra has suspended all borrows involving two tokens. The prices of xSTRK and sSTRK surged to three times their normal levels, leading to a freeze on new collateral deposits. The Nostra network is advising users to close all positions to prevent further complications.
In the meantime, the crypto company Circle, known for its issuance of
, is making its way into the Japanese crypto asset market. This update is very positive. Given that Japan is among the largest economies globally by GDP, it signifies that new capital will flow into crypto.
What transpired with Nostra, and why is this advantageous?
A pricing error for crypto occurred within Nostra, a Decentralized finance lending protocol on Starknet. The derivatives xSTRK and sSTRK, linked to Starknet’s STRK token, saw their prices inflate threefold. Consequently, this misclassification of certain borrowing positions created an impression of heightened risk, leading to a suspension of all borrowings. This situation could potentially lead to liquidations, exposing users to asset losses.
#Nostra #DeFi lending protocol has paused its lending activities
where the price of $xSTRK and $sSTRK was exaggerated by about 3 times
This could result in unnecessary liquidation threats. The network is urging users to retrieve their funds… pic.twitter.com/9cXjRUxo6F
— ShadowCipher (@ShadowCipher_) March 25, 2025
Nonetheless, the Nostra protocol responded promptly, advising borrowers to withdraw their assets before the situation escalated. This pricing discrepancy could have instigated forced liquidations.
The underlying issue emanated from the chosen price feed source. Since there was no alternate Oracle service in sight, the team lacked a secondary feed that could rectify the issue. Clearly, the Nostra team recognized that prioritizing safety is essential, and a dependable alternative needs to be established.
Nostra stands out as a key DeFi crypto initiative built upon the Starknet framework. Starknet itself is an L2 zero-knowledge proof solution based on the Ethereum distributed record. The total value locked (TVL) in Nostra is approximately $55 million, while Starknet’s TVL is around ~$575 million.
Nostra’s operation allows users to use Ether or stablecoins like USDC or USDT as collateral, and in return, they can access a loan. Users can then borrow supported assets (primarily stablecoins) directly from the protocol. Recently, they have introduced their own stablecoin, UNO, designed specifically for use across Starknet decentralized applications. However, if your collateral’s value declines significantly, this presents a risk of liquidation for your position.
While this scenario appears negative, it exemplifies a significant advancement towards enhancing safety and transparency.
DISCOVER: Best New Cryptocurrencies to Invest in 2025
Circle’s Entry into the Japanese Market
The USDC stablecoin is now making its debut in the Japanese cryptocurrency scene. Following the recognition of Circle’s stablecoin under MiCA regulations in Europe, they have turned their attention to another trading market. The Japanese Financial Services Agency (FSA) has granted approval for USDC to become the inaugural dollar-pegged stablecoin authorized for utilization in Japan.
Licensed exchanges will finally be introducing USDC and stablecoins in Japan. pic.twitter.com/HGXwgbbl13
— hisashi.sol | Superteam Japan (@leomarudesu) March 6, 2025
The launch will be executed through a partnership with SBI Holdings, a major financial conglomerate in Japan. SBI VC Trade, a subsidiary of SBI Holdings, is set to release USDC on March 26, 2025. Additionally, prominent crypto exchanges like Binance Japan and Bitbank have pledged to list and distribute USDC.
Circle’s CEO, Jeremy Allaire, emphasized Japan’s enthusiasm for distributed ledger technology and the advancement of its digital economy. He also pointed out the clear regulatory framework governing stablecoins in Japan, alongside USDC’s role as a secure and trustworthy digital dollar.
This strategic collaboration undoubtedly opens new opportunities for both entities, creating an exciting new arena for the crypto industry.
DISCOVER: Top Solana Meme Coins to Buy in March 2025
Join The 99Bitcoins Update Discord Here For The Latest Market Updates
Key Takeaways
The article DeFi and Stablecoin Crypto Updates: Nostra Pauses Borrowing, USDC Hits Japan, Optimistic? first appeared on 99Bitcoins.
