Pac Finance — a lending protocol and an Aave fork on Blast network — saw a large amount of liquidations on April 11 after the platform suddenly decreased the liquidation threshold for user positions.
The developer wallet adjusted a function on Pac Finance’s PoolConfigurator-Proxy contract, which brought down the liquidation threshold of Renzo restaked ether loans without prior announcement or a timelock, resulting in large liquidations. "Fundamental problem with forking code is the lack of in-depth knowledge of the software and the parameters," Kulechov further commented.
Pac Finance posted on X that it is aware of the issue and is in contact with impacted users. It also claims to be "actively developing a plan with them to mitigate the issue."