Tydro Restores $75 Million USDC Borrow Cap After Freeze

Tydro, a lending protocol on Ink, restored its $USDC borrow cap to 75 million tokens on Oct. 31, removing the final restriction it had retained after its Oct. 29 market freeze.

An onchain transaction at 12:45 p.m. ET raised the limit from 51.6 million $USDC. “Market parameters are now back to their pre-freeze state,” Tydro said.

At the time of reporting on Oct. 31, its $USDC reserve page showed $50.51 million in outstanding loans. Subtracting that from the page's $74.99 million valuation of the restored cap leaves about $24.5 million in borrowing headroom, according to The Defiant's calculation. That compares with roughly $1.1 million under the reduced cap when The Defiant reported the partial reopening on Oct. 30.

Available liquidity remains a separate constraint. The reserve showed $18.6 million available, setting a lower ceiling on immediate new lending than the cap allows. Borrowers also need sufficient collateral. The cap limits total outstanding borrowing from the reserve, rather than individual loan sizes, under Tydro's documented controls.

Tydro froze its lending markets on Oct. 29, citing “recent reported exploits.” It kept repayments, withdrawals and liquidations available. On Oct. 30, it restored new borrowing and collateral loan-to-value limits, leaving the reduced $USDC cap as the sole exception.

Tydro had said that lower cap would remain until Binance confirmed “full isolation of the impact.” In a later security update on Oct. 30, Binance said it had “contained the compromised infrastructure,” revoked affected authorizations and implemented additional controls to prevent further unauthorized activity. The exchange said its investigation remained ongoing.