DeFi Lending: Overpromised, Under-delivered (For Now)
The whole LUNA debacle wasn’t the first in cryptoland, nor the last. It’s just physics – when pushed far and hard enough either something breaks or the energy is dissipated into oblivion. There were uncanny equivalents in traditional finance – think subprime and Lehman and the tsunami of QE that followed. Blowups will always be a feature of life. The silver lining of course, are the modifications and adjustments made ex post, even for DeFi.