The collapse of centralized and decentralized crypto lending projects alike during 2022 had a profound impact on the market. Terra alone evaporated over $60 billion in wealth from DeFi. Centralized bankruptcies like FTX, BlockFi, Celsius, Genesis and many, many others lost a similar, if not higher, combined amount. But the sudden collapse of these companies was not just due to a particular market event — it was a symptom of larger structural issues for the lending industry. 

The crisis exposed some stark realities about the unstable foundations that the digital asset lending industry had been built upon: an industry-wide lack of transparency, a complete absence of internal risk…

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