The near-death of decentralized finance

What's next?

Dear Reader, Decentralized finance (DeFi) almost kicked the bucket.  According to industry sources, nothing failed or crashed per se.  But the big promise of DeFi is no longer as viable as it once was. What happened? At its peak (in November 2021) the sector TVL hovered around $172 billion. Today, it sits at a third of that — barely $40 billion. The bear market has taken its toll. A major sector "facelift" is needed if DeFi is to reach its potential.  For one, some larger protocols continue offering unsustainable returns.  Couple that with surging interest rates, rising inflation levels, and a boost to T-Bill rates — and investors have greener pastures to invest in.  Slowly, but surely, their interest in the space has wavered.  More recently, another unthinkable event almost took place.  Curve Finance, a systematically critical DeFi platform, almost went under.  Its founder Michael Egorov found himself on the hook for hundreds of millions of personal loans that were about to get liquidated.  Had that happened, Curve could have gone "belly up".  Curve's native coin is used as collateral across DeFi. So the fallout could have demolished the entire sector.  We have no idea what is next for DeFi.  What we do know is that regardless of what happens… Crypto investors can rely on Cointelegraph Markets Pro to find… Better investments across all crypto sectors.   Regards, Russell DeCorte Director Markets Pro © 2023 COINTELEGRAPH MARKETS PRO COINFIDENTIAL. Copyright © 2023 Cointelegraph Markets Pro, All rights reserved. You are receiving this email because you opted in at our website. Our mailing address is: Cointelegraph Markets Pro 21 W 46th St New York, NY 10036-4119 Add us to your address book Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.