Hodlnaut Liquidity Problems

Build On Merlin
3 min readAug 8, 2022


Using Merlin by VALK to analyse the wallet activity of crypto lender Hodlnaut, that, after liquidity problems, has paused withdrawals.

This thread will be diving into their DeFi activity.

On 8th August, Hodlnaut announced they would be pausing withdrawals.

Another CeFi company that has taken on too much risk and put their clients’ deposits on the ropes.


Using Nansen, we identified a number of wallets linked to Hodlnaut, and plugged them into Merlin’s calculation engine to view PNL related to their activity, asset composition and historical transactional data

The major wallet associated with Hodlnaut is labelled as Trading Wallet Address on Nansen:(0x99FD..).

After plugging the address into Merlin, we saw the wallet has $64,686,513, with assets (as well as liabilities) spread across Aave, Compound and Lido, amoong others;

Let’s dive into this a bit further.

Firstly, note that total debts are currently $20,329,770. These will need to be repaid soon in order to meet any liquidation (and potentially bankruptcy) notices elsewhere.

On Aave, approximately $6M of assets (DAI and CRV) are borrowed:

Also on Aave, $19.8M of stETH is being put to work and has generated a total of $162,433 in yield and a PNL (unrealised) of $2M.

On Compound, $44.4M of WBTC has been generating yield, with 237 transactions related to the asset on the WBTC Compound pool.

Despite the positive yield, all strategies related to WBTC on the protocol have resulted in a — $52.7M PNL. Not so good.

Similarly, over $14M of ETH, DAI and USDC are currently borrowed on Compound.

If we view timestamped transactional history for Aave in the last few weeks, we can see large amounts of withdrawals and repayments from Aave pools. In particular, multi-million dollar repayments/withdrawals of stETH and WETH are visible

A similar story is painted for assets on Compound:

We hope the best possible solution can be reached for Hodlnauts and all of its depositors.

Merlin by VALK will soon have Curve and Convex integrated within its PNL calculation engine.

Stay tuned and use it for free here:




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