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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
Sponsored Post
Elon Musk’s AI-Enhanced Monkey Stock Pickers
We’ve all heard the (true) story of the blindfolded dart-throwing monkey that got better returns than stock-picking pros. You may have also heard that Elon’s Neuralink is equipping monkeys with intelligence-enhancing brain implants (Also true). So, is it really soooo crazy to think this could all be his evil plan to “outsmart the market”?
You be the judge. What’s clear is that the unpredictable stock market can make anyone go bananas. But there are alternatives. In fact, as stocks and crypto crashed, one investment platform had 3 recent exits, realizing: +13.9%, +17.8%, and +21.5% net returns each.
It’s called Masterworks. They’re unlocking the $1.7 trillion high-end art market for investors like you. Now, nearly anyone can invest in shares of multi-million dollar art by names like Banksy and Picasso. Why art? Well, contemporary art prices:
- Outpaced the S&P 500 by 131% over the last 26 years.
- Have the lowest correlation to equities of any asset class, according to Citi
- Beat gold, real estate, and stocks in inflationary periods historically
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See important Regulation A disclosures.
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
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
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Podcast Video: Sam Williams On Storing Files On-Chain For Eternity
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Shoutout
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DeFi Explainers
What is DeFi Borrowing?
A Primer for One of the Most Popular Practices in DeFi
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.
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- Source: https://thedefiant.io/bad-debt-piles-up-at-defi-lending-protocols/
