DeFi yield platform Altura has announced an orderly wind-down of its vault operations. This comes after experiencing a surge in withdrawals triggered by growing market panic following the recent Mainstreet (MSY) depeg.
The move comes even though Altura insists it had no direct exposure to Mainstreet or any of its investment strategies.
Mainstreet Depeg Sparks Fear
The panic started after Mainstreet’s msUSD stablecoin depegged. This event shook the DeFi market and triggered withdrawals across several protocols, including Altura. However, Altura said it had no exposure to Mainstreet and confirmed its vaults and markets (HyperEVM lending vault, Alpha USDT Prime, and USDT/AVLT) were unaffected.
Still, fear spread quickly, and withdrawals spiked. Altura processed over $5M in 24 hours. CEO Ranveer Arora later confirmed that total redemptions had crossed 8.5M USDT.
Altura Starts Unwinding Positions
Faced with continued withdrawal pressure and negative market sentiment, Altura decided to begin winding down its vault. The company made this decision in an effort to protect user capital.
The company has already notified partners and counterparties. In addition, it has started unwinding positions held across exchanges, private credit opportunities, and real-world asset (RWA) strategies.
According to Arora, some positions can be redeemed immediately, while others require standard settlement periods. Capital will be returned to users as underlying investments are redeemed.
No Hack, But Liquidity Is Tight
Altura stressed that this is not a hack or insolvency event. Meanwhile, DefiLlama data shows that Altura currently manages approximately $32.36 million in total value locked on Hyperliquid L1. Its tracked yield pool offers an average APY of around 17.5%.
However, part of those assets is allocated to private credit and RWA investments. This allocation makes them difficult to liquidate quickly during periods of heavy withdrawals.
As a precaution, Altura has advised users to unwind borrow or looping positions involving the AVLT/USDC ETH market. Users are advised to take this action until conditions stabilize.
The protocol’s AVLT token has also come under pressure, falling from $1.08 to around $0.93 over the past week. For now, Altura says it will continue providing updates as redemptions progress and additional liquidity becomes available.
Community Reaction
On the other hand, One crypto user raised concerns about Altura’s legitimacy, questioning its claimed RWA strategy and its relationship with Inessa Holdings. The user reported several red flags, including Inessa Holdings’ limited online history and a recently registered website. The user cited lack of office addresses, similarities between the Altura and Inessa domains, and doubts about how the firm generates 20%+ APY. Additionally, the user claims of incorrect public data and Altura’s stated strategies warning other users to reduce exposure to AVLT-related products.
