Today in Crypto: Stablecoin Cashio Loses $28M in Value After Glitch Attack; Figure Lets Homebuyers Use Crypto for Collateral for Loans

Cashio, the Solana-based stablecoin protocol, has succumbed to an “infinite glitch” attack, according to developers, Coindesk wrote Wednesday (March 23).

Cashio’s CASH stablecoin dropped in value to almost zero, a loss estimated at $28 million. CASH is pegged to the U.S. dollar and backed by USDT and USDC. The attack manipulated Cashio’s smart contracts to mint 2 billion CASH tokens without backing and exchange them for stablecoins on Cashio’s liquidity pools.

The team said users shouldn’t mint CASH due to the glitch, and people should withdraw their funds from pools.

In other news, Figure Technologies, the blockchain lending startup, has debuted Crypto Mortgage and Crypto Mortgage PLUS, which will let users borrow against their bitcoin or ether to fund home purchases, Coindesk wrote Wednesday.

Mike Cagney, co-founder, said this could be done up to $20 million for a 30-year mortgage. The loans will reportedly be 100% loan-to-value.

Nexo, a lender for digital assets, has rolled out Nexo Ventures, its Web3 investment and acquisition fund, a press release said.

It plans to invest $150 million in long-term commitments in a range of early-stage retail and institutional projects.

It will invest in five areas: Web3, DeFi innovation, metaverse, NFTs and GameFi, payments and trading infrastructure and compliance solutions.

Meanwhile, Acala has rolled out its $250 million aUSD Ecosystem Fund, which will support early-stage startups building applications through stablecoins, a press release said.

The concept originated from the anticipated need for a native, decentralized multichain stablecoin, which could be a foundational “oil” to operate a new kind of economy.

The stablecoin was decided on because of its “proven and reliable” mechanism.

Finally, the Central Bank of Honduras (BCH) has rebutted social media talk about an eminent announcement that bitcoin would become legal tender in that country, a report said.

The BCH said bitcoin “is not regulated” and that the lempira was still the only legal tender there.

However, the BCH said it plans to keep looking into central bank digital currency (CBDC) for possible adoption.