Len­ding plat­forms – a key ele­ment of decen­tra­li­sed finan­ce (DeFi) – stand at the cent­re of the recent cryp­to tur­moil. Total value locked in DeFi len­ding pro­to­cols pea­ked at $50 bil­li­on in ear­ly 2022, up from near­ly zero at end-2020. Len­ders are attrac­ted by high inte­rest rates that often far exceed tho­se on bank depo­sits or money mar­ket funds (right-hand panel). Bor­ro­wers, in turn, use DeFi len­ding to gain lever­aged expo­sure to cryp­to­as­sets or adjust port­fo­li­os. Howe­ver, the recent col­lap­se of Anchor on the Ter­ra block­chain and Cel­si­us’ restric­tions on with­dra­wals have shaken con­fi­dence and put a stop to the rapid ascent of cryp­to lending. …

Quel­le /​ Link: DeFi len­ding: inter­me­dia­ti­on without information? 

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