Sherlock, a smart contract auditing platform, predicted a $4 million loss for its stakers, or roughly one-third of the capital in its staking pool, due to Orthogonal Trading FTX-induced loan defaults on crypto lending protocol Maple Finance in a blog post on Monday. Sherlock stated that it had deposited $5 million USDC of its $12 million staking pool to the credit pool on Maple managed by M11 Credit on August 31. The insolvency of Orthogonal Trading caused $31 million in credit pool loans to default this week. Bad debt accounts for 80% of the credit pool’s outstanding loans. However, when Sherlock invested in the pool, Orthogonal’s borrowings accounted for only 14% of the pool’s loans.
