Credit/Macro/Crypto Analyst, Former Credit/MA PM

Rose Choy

Crypto

<ul>
<li>The crypto lending market has been decimated with casualties from both lenders and borrowers after the FTX fallout and credit crisis. </li>
<li>Most centralized lenders have been annihilated while DeFi platforms withstood the shock. The demand for lending has cratered and this will test the viability of existing platforms given lower volumes.</li>
<li>However, we will likely see new platforms emerge that have the necessary lending, trading and risk management expertise from traditional finance that could propel further institutional participation in crypto. </li>
</ul>


The crypto lending market has been decimated with casualties from both lenders and borrowers after the FTX fallout and credit crisis. 
Most centralized lenders have been annihilated while DeFi platforms withstood the shock. The demand for lending has cratered and this will test the viability of existing platforms given lower volumes.
However, we will likely see new platforms emerge that have the necessary lending, trading and risk management expertise from traditional finance that could propel further institutional participation in crypto. 


Crypto Lending Series #3: Light at the End of the Tunnel?

Data-Driven Analysis of Cryptocurrency Markets, Kaiko

Kaiko

Data-Driven Analysis of Cryptocurrency Markets

Kaiko is the leading cryptocurrency market data provider for institutional investors and enterprises. We empower market participants with accurate, transparent, and actionable financial data to be leveraged for a range of market activities. Kaiko’s mission is to be the foundation of the new digital finance economy by serving as a single source for market information. Our mission is premised on the idea that high-quality data drives market efficiency and greater transparency throughout the industry. For each of our enterprise clients, we build custom data plans designed for a range of use cases.

<ul><li>Aave and Compound are two of DeFi’s stalwarts: the two largest lending and borrowing protocols on Ethereum, each with a TVL over ten times larger than the third largest protocol.</li><li>Both protocols have functioned nearly flawlessly this year while a growing number of centralized entities have been failing in often spectacular fashion.</li><li>Aave has accumulated just $2.17mn of bad debt (most of which was generated in a recent, likely unprofitable, exploit covered here) relative to its $3.2bn TVL, while Compound has just $65,000 to its $1.5bn TVL. </li></ul>

Aave and Compound are two of DeFi’s stalwarts: the two largest lending and borrowing protocols on Ethereum, each with a TVL over ten times larger than the third largest protocol.Both protocols have functioned nearly flawlessly this year while a growing number of centralized entities have been failing in often spectacular fashion.Aave has accumulated just $2.17mn of bad debt (most of which was generated in a recent, likely unprofitable, exploit covered here) relative to its $3.2bn TVL, while Compound has just $65,000 to its $1.5bn TVL. 

<ul>
<li>In May and June, the market witnessed Luna/UST's collapse, the liquidation of Three Arrows Capital (a large crypto fund), and insolvencies of major centralized crypto lending firms. </li>
<li>Excessive leverage, poor risk management and lending practices in the lending sector exacerbated the market sell-off amidst a global macro risk-off. How will the lending sector emerge from the rubble?</li>
<li>We discuss the crypto lending landscape, deep dive into DeFi protocols Aave and Clearpool, share insights from some institutional borrowers and come up with key lessons learned for the future. </li>
</ul>


In May and June, the market witnessed Luna/UST's collapse, the liquidation of Three Arrows Capital (a large crypto fund), and insolvencies of major centralized crypto lending firms. 
Excessive leverage, poor risk management and lending practices in the lending sector exacerbated the market sell-off amidst a global macro risk-off. How will the lending sector emerge from the rubble?
We discuss the crypto lending landscape, deep dive into DeFi protocols Aave and Clearpool, share insights from some institutional borrowers and come up with key lessons learned for the future. 


Independent Research, Cryptocurrencies, Carbono Insights

Carbono Insights

Independent Research, Cryptocurrencies

Advisory Firm Specialized in Cryptocurrencies

Carbono is an advisory firm specialized in cryptocurrencies that helps clients navigate the economic and financial innovations derived from the rise of digital assets. Our investment fund, Abacus Carbono, is designed to be an on ramp for investors interested in cryptocurrencies and projects born under the crypto-economy principles.

<ul><li>Phase 1 of bear markets is a piece of cake: it feels more like a healthy correction. </li><li>Phase 2 looks more is peak chaos and peak pain. It’s when hen things go South bad. </li><li>Phase 3 is when tedium kicks in, and people genuinely contemplate their lives’ decisions.</li></ul>

Phase 1 of bear markets is a piece of cake: it feels more like a healthy correction. Phase 2 looks more is peak chaos and peak pain. It’s when hen things go South bad. Phase 3 is when tedium kicks in, and people genuinely contemplate their lives’ decisions.

Digital Asset Management Firm, Etherbridge

Etherbridge

Digital Asset Management Firm

Etherbridge is a digital asset management firm investing in the value of information and trust

<ul><li>As our journey into Decentralised Finance (DeFi) protocols continues, we will look at the more exotic type of financial instruments available.</li><li>Over the past few weeks, we have covered many of the primary functions available, including exchanging with Uniswap, earning with Aave, yearn.finance and MakerDAO, staking with Lido and trading perpetual contracts with dYdX.</li><li>Last week we covered how one could trade option contracts with Hegic; these were very basic and consisted of buying put and call options.</li></ul>

As our journey into Decentralised Finance (DeFi) protocols continues, we will look at the more exotic type of financial instruments available.Over the past few weeks, we have covered many of the primary functions available, including exchanging with Uniswap, earning with Aave, yearn.finance and MakerDAO, staking with Lido and trading perpetual contracts with dYdX.Last week we covered how one could trade option contracts with Hegic; these were very basic and consisted of buying put and call options.

United States

AAVE is a decentralised Finance (DEFI) protocol that allows users to borrow and lend crypto. Holders of AAVE get discounted fees on the platform and are allowed to vote on the future of the protocol

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Aave (XVV DAR CURNCY)

Crypto Lending Series #3: Light at the End of the Tunnel?

The crypto lending market has cratered after lender failures and FTX's collapse. Some platforms may find themselves struggling, but we are not far...

Rose Choy

A Comparison of Aave and Compound

Aave and Compound are two of DeFi’s stalwarts: the two largest lending and borrowing protocols on Ethereum, each with a TVL over ten times larger...

Kaiko

Crypto Lending Sector Series

As the crytpo lending crisis winds down, the restructuring phase begins. We examine the lending landscape, and two innovative protocols, and...

Rose Choy

#30 Two other emperors have no clothes

Phase 1 of bear markets is a piece of cake: it feels more like a healthy correction. Like justice being served and dumb projects being exposed....

Carbono Insights

Ribbon Finance

As our journey into Decentralised Finance (DeFi) protocols continues, we will look at the more exotic type of financial instruments...

Etherbridge

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