Summary : Much of the turmoil we’ve seen grip crypto markets since May can be traced back to these multibillion-dollar crypto companies with centralized figureheads who call the shots. “The liquidity crunch affected DeFi yields, but it was a few irresponsible central actors that exacerbated this,” said Walter Teng, a Digital Asset Strategy Associate at Fundstrat Global Advisors. Back when the Fed’s benchmark rate was virtually zero and government bonds and savings accounts were paying out nominal returns, a lot of people turned to crypto lending platforms instead. In practice, DeFi loans function more like sophisticated trading products, rather than a standard loan.
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