Bad Debt Piles Up at DeFi Lending Protocols

News

• Bad Debt Piles up at DeFi Lending Protocols
• DeFi Stalwarts Explore Tie-Ups to Weather Bear Market and FTX Fallout
• Coinbase Offers Free Trades from USDT to USDC
• SBF Spars with CZ And Denies ‘Hunting’ Three Arrows

Podcast

Video

• Looks Like SBF Incriminated Himself

DeFi Explainers

• What is DeFi Borrowing?

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News

DeFi Lending

Bad Debt Piles up at DeFi Lending Protocols

Venus Protocol and Iron Bank Incur Eight-Digit Liabilities as MakerDAO Keeps a Clean Sheet

By Samuel Haig

In a year when a bear market pummeled crypto investors and bankruptcies spread contagion through the DeFi sector, it was only a matter of time before the bill would come due.

That time, it appears, is now. Bad debt is piling up at many decentralized lending protocols, according to data from RiskDAO. This includes top money markets Aave, Venus, and Abracadabra.

Read the full story in The Defiant

DeFi Alliances

DeFi Stalwarts Explore Tie-Ups to Weather Bear Market and FTX Fallout

Aave, MakerDAO, Compound and Yearn Seek Partnerships as DeFi Shifts into Next Phase

By Owen Fernau

When disaster strikes, kindred spirits join together. That appears to be what’s happening in DeFi as the sector’s oldest and most influential protocols lock arms in the wake of the FTX collapse.

On Dec. 4, the members of MakerDAO, DeFi’s No. 1 protocol with $6.4B in total value locked, passed a proposal to supply up to $5M of its DAI stablecoin to Compound, a major DeFi money market. That amount may increase up to $160M, according to a post on Maker’s forum.

Read the full story in The Defiant

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Stablecoins

Coinbase Offers Free Trades from USDT to USDC

Exchange Takes Aim At Tether With Emphasis On ‘Stability and Trust’

By Owen Fernau

One of crypto’s largest centralized exchanges is shaking up the battle for stablecoin supremacy. Coinbase, the second largest exchange by volume, which processed over $1B of trades on Dec. 8, is encouraging its users to swap from USDT to USDC with fee-less trades.

Read the full story in The Defiant

FTX Crisis

SBF Spars with CZ And Denies ‘Hunting’ Three Arrows

Disgraced FTX CEO Commits to Testifying Before Congress

By Aleksandar Gilbert

In a flurry of tweets early Friday, former FTX CEO Sam Bankman-Fried sparred with archrival Changpeng Zhao of Binance, denied allegations he had orchestrated the downfall of crypto hedge fund Three Arrows Capital in June, and committed to testifying before a Congressional Committee next week.

Read the full story in The Defiant

Defiant Video

Looks Like SBF Incriminated Himself

Podcast Video: Sam Williams On Storing Files On-Chain For Eternity

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DeFi Explainers

What is DeFi Borrowing?

A Primer for One of the Most Popular Practices in DeFi

By Rahul Nambiampurath

Financial freedom and inclusivity have been hot issues for many years. Nonetheless, it took Bitcoin to popularize the weird concept that a decentralized computer network can produce sound money.

And just as Bitcoin raised the possibility of money without a central bank, Ethereum has developed borrowing without the involvement of commercial banks. Alongside decentralized exchanges, borrowing dApps have generated $5B in revenue at the end of 2022.

Read the full explainer at The Defiant