DeFi’s problem exists: It only lends itself money

Remember how the banking system self-destructed after a few decades? Now imagine if banks only lend money to finance other banks, and you could have the concept of a house of cards as “decentralized finance” or DeFi.

Cryptocurrencies continue to grow, with bitcoin trading stabilizing below $20,000 for the first time since 2020. The chaos has spread to DeFi: Celsius, a leading crypto lender with approx. $20 billion, recently forced to freeze deposit withdrawals. Last week, crypto exchange FTX said it was bailing out one of Celsius’ tough competitors, BlockFi, with a $250 million loan, not long after rescuing the crypto broker. Voyager Digital. DeFi’s problem exists: It only lends itself money

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