Are Stable Coins and Defi Really Safe?
Here’s my answer to a question everybody is asking right now
The current Crypto Crackdown has revealed huge fragility in the crypto Ecosystem
Especially in DEFI where the shit hit the fan.
Big Time.
The total locked Value (TVL) in DEFI has plummeted from $231,- billion to $112.29 billion on Sunday. A 51.38% loss in 42 days. This means $112 billion has exited the markets of decentralized finance.
The Terra-Luna ecosystem losing its peg to the dollar accelerated the exodus.
In case you didn’t notice, the stable coin UST dropped a whopping 80% to 0.225 USDT on May 11th. The TERRA-LUNA token lost almost all of its value, and the lending protocol Anchor was drawn down into the meltdown to declining 93% from $30 to $2 on May 11th alone.
The result of all of this?
Regulators have woken up again, smelling a chance to bring crypto to its knees, or at least to regulate stable coins, as the UK announced.
The most burning question for you as a crypto wallet holder is whether your DEFI product and your stable coin of choice is actually safe.
