Another Big Crypto Player Just Blew Up

None of the well-regarded DeFi protocols have blown up during this crash, while several centralized funds/lenders have. This is proving out the inherent resiliency of decentralized finance.

LUNA/UST was nominally a DeFi system that blew up, but not well regarded, with many in the DeFi space warning that its design was fundamentally flawed and would lead to a death spiral, not least of all, the founder of the largest stablecoin project, MakerDAO/DAI:

https://twitter.com/RuneKek/status/1478166276979793922

private labeled securitized mortgages were the defi of early 2000’s. even if you over collateralized with us treasuries you would be at risk for a volker style sudden increase in interest rate which would decimate your stablecoin. Unless the fed opens a facility to backstop your stablecoin, which they might do I guess if it became important enough.