He went on to say that this was particularly relevant to collateral-free lending protocols, or uncollateralized lending protocols. His worries regarding the security of the lending area might be valid, as seen by the recent developments surrounding BlockFi and Salt, two lending protocols.Loans secured by cryptocurrencies are one of the services offered by BlockFi, a cryptocurrency exchange platform.
held the majority of its assets, it did confirm that it had deposits on the platform, as well as an undrawn line of credit from FTX and debts owed to it by FTX.reported that the protocol was making preparations for a possible bankruptcy filing, suggesting that the situation may be worse than it appears.withdrawals.
TVL fell across the board for lending processes, but it fell more precipitously for some. Although, since these lending methods typically require collateral before extending credit, they may be somewhat immune to the current FTX drama. On the other hand, complications may develop if the collaterals are assets whose value has fallen precipitously, such as the FTT token.Even when looking at the TVL of uncollateralized lending methods, we can see that some of them are on the decline. Maple Finance appeared to have a good TVL, as evidenced by market performance.on the company’s website, Maple Finance avoided disaster when, in September, its delegates reportedly called in all loans to Alameda.
According to DefiLlama’s numbers, the total volume has been on the rise over the past few weeks. This may be a result of people wanting to avoid the potential risks associated with centralized exchanges by using decentralized alternatives.So far, the DeFi space seems to be unaffected by the saga of FTX. However, the full degree of this stability is still unclear.Subscribe to get it daily in your inbox.