A problem with lending against correlated assets is that recovery rates are really low. Which means that when things go wrong, the lender loses a lot of money and they were taking a big haircut on the yield for "protection".

Cipher
@CipherResearchx
03-22
DeFi exploits in 2026 so far: Step Finance → $27.3M Truebit → $26.2M Resolv → $25M+ (today) SwapNet → $13.4M YieldBlox → $10.97M SagaEVM → $7M Makina → $5M IoTeX → $4.4M Aperture Finance → $3.7M Venus Protocol → $3.7M CrossCurve → $2.8M Solv Protocol →
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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