Last week, the DeFi system was faced with the burdens of the bears arising from the winding-up stories of Three Arrow Capital (3AC) and the Celsius Winding-up Exchange. MakerDAO decided to discontinue Aave (AAVE) from its direct deposit unit as a hedge in light of the possibility of Celsius adding up and dropping the price of ether (stETH).
The trading company 8 Blocks Capital called out to the scene with funds owned by 3AC to freeze the assets as rumors of 3AC’s bankruptcy are kept alive. Micheal Saylor believes that Bitcoin (BTC) and Lightning Network can solve many of the DeFi ecosystem problems.
The top 100 DeFi symbols were beaten by bears, with the majority of the symbols subscribing to a multi-month low along with a double-digit loss over the past week.
Crypto crash causes destruction of DeFi protocol, CEX
Heavy sales of cryptocurrency in the markets on Monday caused significant ripples for both projects and parties. DeFi closing rules Aave’s utilization rate has fallen in almost all stablecoin loans. In particular, Binance USD (BUSD) borrowing is now only 30% compared to a maximum of 80% in May.
The utilization rate is the ratio of borrowed funds to deposits. Since borrowers need to provide digital property insurance before borrowing from Aave, users are likely to withdraw en masse in light of Monda’s sale to prevent bankruptcy. Data from DefiLlama indicates that the total value of locked Aave decreased from 33.51 billion dollars last October to 8.11 billion dollars.
Su Zhu’s mystical statement when rumors swirl about 3AC liquidation and bankruptcy
Su Zhu, co-founder of cryptocurrency company Three Arrows Capital (3AC), based in Singapore, has issued a cryptic statement on Twitter in response to rumors that the company is fighting bankruptcy.
An online chat about 3AC not being able to meet its margin call began after 3AC started moving assets around this week to replenish funds on diversified financing systems such as Aave to prevent possible bankruptcy within Ether (ETH). this week. There are unconfirmed reports that 3AC has faced hundreds of millions of bankruptcies from many places.
Maker closes Aave’s DAI supply as Celsius’ downturn continues
MakerDAO has voted to halt Aave’s lending ability to create a Dai (DAI) for its unsecured lending pool as the risk of a Celsius liquidity crisis looms over the entire cryptocurrency ecosystem.
The Distributed Independent Organization (DAO) took the decision as a way to reduce the Maker’s exposure to the controversial mortgage and lending platform if Celsius goes to his stomach and also collapses the stETH stick.
Liquidator asks forum to freeze 3AC funds to recover assets after lawsuit
Danny Yuan, CEO of trading company 8 Blocks Capital, called for funds with assets owned by 3AC to freeze the assets as rumors of 3AC bankruptcy continue to circulate.
In a Twitter thread, Yuan explained their company’s involvement with 3AC and stated that they were paying the company to use their current business accounts. The agreement provided for the possibility of withdrawing funds at any time.
Bitcoin and Lightning Network can save DeFi from adversity – MicroStrategy CEO
Given the recent vulnerability in the DeFi sector, Bitcoin Maximum and MicroStrategy CEO Michael Saylor believes that Bitcoin and the Lightning network can save the DeFi market.
With two enormous protocols, Terra and Celsius, facing acute difficulties within a month of each other, the DeFi sector is going through a difficult time. And in a recent tweet, Saylor suggested that Bitcoin and Lightning could help stabilize the industry.
DeFi market overview
Analytical data show that the total value of DeFi locked recorded another week of outflows in the past week, where the value dropped to 55 billion dollars. Data from Cointelegraph Markets Pro and TradingView show that the top 100 symbols of DeFi in terms of market value were listed a week full of volatile pricing measures where bears dominate market development.
The majority of the DeFi symbols in the top 100 ranking by market value bleed in double digits. The Theta network showed the highest resistance, which fell by 12% in the last week, after the Basic Attention Token (BAT), which fell by 14%. The remaining 100 DeFi tokens dropped by more than 20%, with some recording losses of up to 40% in the last seven days.
Thanks for reading our summary of this week’s most influential DeFi development. Join us again next Friday for more stories, insights and education in this powerful space for progress.
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