TelosC USDT0 Euler VaultPrice

(246USDT0)

The TelosC USDT0 Vault is a specialized lending and borrowing pool. Users deposit USDT0—an omnichain version of Tether designed for seamless movement across blockchains via LayerZero—to earn interest. The vault is managed by a risk curator called Telos Consilium, which is responsible for setting risk parameters and determining which assets can be used as collateral within the market. It operates on a decentralized lending infrastructure where depositors provide liquidity for borrowers.

The vault is frozen because it has reached 100% utilization, meaning there is no liquid USDT0 available for users to withdraw. This situation arose following the collapse of a partner protocol in late 2025, which suffered significant losses due to operational mismanagement. Because the vault had direct exposure to that protocol's assets, the collateral backing the loans became illiquid or worthless. Consequently, the lending platform deprecated the vault to prevent further activity while the liquidity remains depleted.

Currently, standard withdrawal transactions will fail because the vault’s liquidity is exhausted. The official guidance for affected users is to contact the risk curator, Telos Consilium, directly through their official community channels or social media. There are ongoing discussions regarding legal proceedings against the managers of the insolvent partner protocol to recover the missing $93 million. If successful, these funds would be used to restore liquidity to the vault, allowing depositors to eventually redeem their assets.

Community concern is primarily focused on the external fund managers of the insolvent partner protocol who were responsible for the misappropriation of assets. Some users also question the level of due diligence performed by the risk curator, Telos Consilium, regarding the collateral allowed in the vault. While the smart contracts of the lending protocol functioned as intended, they could not prevent the accumulation of 'bad debt' once the underlying collateral lost its value and liquidity.

The 'Kinky Interest Rate Model' describes a specific interest rate curve that features a sharp 'kink' or spike once utilization passes a certain threshold, typically around 90%. This model is designed to sharply increase the cost of borrowing when liquidity becomes scarce, incentivizing borrowers to repay and lenders to deposit. Currently, with 100% utilization, the interest rates are theoretically very high, but since the borrowers are insolvent, these interest payments are not currently resulting in actual profit for the depositors.

The 246USDT0 token is a receipt token issued to users who deposit USDT0 into the specific TelosC vault. It serves as proof of the user's share in the lending pool and their claim to the underlying assets plus any interest earned. Under normal conditions, these tokens are burned when a user withdraws their funds; however, due to the current insolvency and 100% utilization, these tokens cannot be redeemed until liquidity is returned to the protocol.