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Lending

Lending protocols form the backbone of the decentralized money market, allowing users to lend or borrow digital assets without intermediaries. Using smart contracts, platforms like Aave and Morpho automate interest rates based on supply and demand while requiring over-collateralization for security. The 2026 lending landscape features advanced permissionless vaults and institutional-grade credit lines. This tag covers the evolution of capital efficiency, liquidations, and the integration of diverse collateral types, including LSTs and tokenized RWAs.

15473 Articles
Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
$1 billion outflow from stablecoins: A detailed look at the truth behind the DeFi collapse.

$1 billion outflow from stablecoins: A detailed look at the truth behind the DeFi collapse.

Author: Chloe, ChainCatcher Before the market could recover from the aftershocks of October 11, the DeFi domino effect began to unfold once again. According to Stablewatch data, yield-generating stablecoins experienced the most dramatic outflow of funds since the Terra UST crash in 2022, totaling $1 billion. Stream Finance's xUSD saw a separate outflow of $411 million, becoming the trigger. This wasn't an isolated incident; this chain reaction of liquidations tore apart the fragile structure of the DeFi Lego stack. Extreme negative returns occurred when the value of collateral plummeted and utilization was close to 100%. The crisis was sparked on November 3rd when Stream Finance suddenly announced that an external fund manager had lost $93 million in trading, immediately freezing all deposit and withdrawal functions. The price of xUSD plummeted from $1 to $0.43, wiping out over $500 million in market capitalization, and it is currently struggling around $0.11. The chain reaction was immediate, with Elixir's deUSD bearing the brunt. As a lending partner of Stream, it held a large amount of xUSD as collateral, resulting in a 65% loss in value, approximately 68 million USDC. Meanwhile, the utilization rate of hidden markets on lending platforms Morpho and Euler surged to 95% to 100%, with lending rates reaching an abnormal low of -752%, indicating that collateral had become dead debt. Compound urgently shut down some markets, and protocols such as Silo and Treeve's scUSD also decoupled from the market. Today, Elixir officially announced on Twitter that the stablecoin deUSD has been retired and no longer has any value. The platform will initiate a USDC compensation process for all holders of deUSD and its derivatives (such as sdeUSD). This includes lenders who hold collateral, AMM LPs, and Pendle LPs. Elixir also warned users not to purchase or invest in deUSD through AMMs or similar channels. This marks the first time in DeFi history that a protocol has proactively announced the "euthanasia" of a stablecoin. While it preserved the principal of holders, it completely ended the deUSD ecosystem. Elixir emphasized that the compensation funds came from the protocol's reserves and assets recovered through Stream, but did not disclose a specific timeline or audit details. The market interprets this as a "cut-the-tails" move by the protocol to avoid legal risks. The root cause of Stream xUSD unanchoring on October 11th To understand the root cause of this storm, we must trace back to the liquidation event on October 11th. A deep dive into Trading Strategy on X on November 5th pointed out that the fundamental reason for Stream's xUSD de-pegging was not the Balancer hack, but rather the failure of its Delta-neutral strategy during the historic liquidation on the 11th. Although Stream claimed to use a Delta-neutral hedging strategy (a 1:1 allocation between spot and short positions), the exchange's automatic position reduction (ADL) system forcibly liquidated its positions during the extreme volatility of October 11th, disrupting the original hedging balance. This resulted in a direct loss of Stream's principal, thus triggering the xUSD de-pegging. The underlying problems include: a severe lack of transparency (only $150 million/$500 million TVL are visible on-chain), high-risk off-chain trading strategies (including volatility selling strategies), and excessive leverage (recursive lending via Elixir). The analysis also points out that Stream is just the first batch of victims to surface, and given the unprecedented extreme liquidation event on October 11th, "more DeFi projects are expected to collapse for similar reasons." Unexpectedly, in just a few days, various DeFi protocols have exploded one after another like dominoes. The outflow of billions of dollars from stablecoins is a major warning to the market. According to @cmdefi's analysis, DeFi falls into two models: unified protocol governance and permissionless independent lending. The former, such as AAVE and Spark, requires governance voting for asset listing, with the platform providing a safety net; the latter, such as Morpho and Euler, has each marketplace independently managed by Curator, often comprised of project teams or stakeholders. Curator's risk lies in its self-established pools, which can list various assets without any platform endorsement responsibility. "Issues like xUSD, or problems with the underlying structure of some stablecoin projects, can lead to utilization rates soaring to 95% to 100%, with investors defaulting on payments despite extremely high interest rates. This is because the collateral has become worthless, making it impossible to redeem the assets, and even the highest interest rates are just numbers." In addition, Mr. Block pointed out that this week's DeFi events remind users that although the name "isolated lending markets" implies that the risk is limited to a certain pool/market, in reality, it may still be exposed to the risks of other assets due to cross-dependency, cascading infection, curator, borrower and structural issues. If the Stream Finance collapse was a lesson, then the outflow of billions of dollars in stablecoin funds is definitely a warning to the market. In DeFi, any risk can spread down five or six layers, and even be transmitted across protocols and chains. Furthermore, not all DeFi protocols have their asset allocations visible on the blockchain. The domino effect of DeFi events may not be over yet, and for users, risk control is absolutely the top priority.

Author: PANews

2025/11/10

$303B giant Hyperliquid steps into on-chain credit – Here’s why it matters

$303B giant Hyperliquid steps into on-chain credit – Here’s why it matters

The post $303B giant Hyperliquid steps into on-chain credit – Here’s why it matters appeared on BitcoinEthereumNews.com. Key Takeaways What new feature is Hyperliquid testing? Hyperliquid is testing a BorrowLendingProtocol (BLP) on its Hypercore testnet. Why does this matter for traders and DeFi? A native lending layer could make Hyperliquid a full-stack onchain platform. Is Hyperliquid [HYPE] broadening its scope? The exchange is now testing a new borrowing and lending feature on its Hypercore testnet. This would be the platform’s first step into native onchain credit markets. And after posting over $303 billion in trading volume in October, the timing is hard to ignore. Is native lending next for Hyperliquid? Hyperliquid’s latest experiment is a look at how the platform wants trading to work. A new module (labelled BLP) has appeared on the Hypercore testnet, and early checks show that it is designed for borrowing, supplying and withdrawing assets directly on chain. By the press time, only USDC and PURR show up in testing, but even that limited set indicates a framework is being put in place. Source: X If this matures into a native lending layer, margin in the Hyperliquid ecosystem wouldn’t rely on isolated balances. It would sit on real, shared lending pools. That would push Hyperliquid beyond perpetuals and closer to a full-on-chain market stack. Hyperliquid stays ahead of the pack The platform led all perpetual DEXs in October with a massive $303 billion in trading volume, edging out competitors like Lighter [LIGHTER] ($272B) and Aster [ASTER] ($260B). Source: X What’s more, its open interest hit $7.2 billion, surpassing all others combined. That kind of activity means liquidity and trader confidence, especially as Hyperliquid tests its next evolution in on-chain lending. If the testnet module delivers, HYPE could soon redefine what a DeFi ecosystem looks like. HYPE cools after a strong run HYPE’s recent rally has hit a pause. The token traded near $40…

Author: BitcoinEthereumNews

2025/11/10

Euler DAO Migrates Treasury to New Multi-Signature Address

Euler DAO Migrates Treasury to New Multi-Signature Address

The post Euler DAO Migrates Treasury to New Multi-Signature Address appeared on BitcoinEthereumNews.com. Key Points: Euler DAO transitions Treasury to a new multi-sig for better risk management. Ensures separation of asset management from governance functions. No major market fluctuations following the migration announcement. Euler DAO has initiated the migration of its Treasury to a new multi-signature address to separate governance and asset management functions, minimizing operational risks, as announced on November 9th via the X platform. This separation strengthens governance transparency and risk management, fostering user confidence and operational integrity during a critical phase of Euler’s decentralized financial ecosystem evolution. Market Response and Expert Insights Euler DAO is moving its Treasury to a new multi-signature address dedicated to asset management and allocation. The previous setup involved a dual-purpose address mixing governance with asset holding, risking operational security. Euler Finance, a leading DeFi lending protocol, embarked on this restructuring to enhance governance transparency and operational resilience. The Treasury’s migration involves transferring all assets, excluding protocol revenue, to this new address created specifically for this purpose. This shift aims to contain risks associated with multisig addresses executing both governance and financial duties. While Objective Labs remains influential in protocol fee management, the segregation aids in streamlining internally aligned capital allocation and grant processes. The market response has shown steadiness, with no unusual fluctuations reported in the Total Value Locked (TVL) or loan liquidations post-announcement. Inside the crypto community, discussions have been focused on risk mitigation and sustainable protocol growth. Euler’s cumulative TVL stands strong with approximately 500 million on Plasma and 140 million on Ethereum, indicating continued investor and developer confidence. Euler Finance’s latest Activity Update showcases ongoing development and community engagement. “Euler enters the final stretch of 2025 in a position of strength… consistent TVL growth, rapidly increasing revenues, a growing user base, and a governance model capable of managing a coherent internal economy.”…

Author: BitcoinEthereumNews

2025/11/10

MOBU is Top Crypto Presale to Buy Now as XRP, ADA Gains

MOBU is Top Crypto Presale to Buy Now as XRP, ADA Gains

The post MOBU is Top Crypto Presale to Buy Now as XRP, ADA Gains appeared on BitcoinEthereumNews.com. Every bull market starts with whispers, the quiet rumble before the rockets roar. Everyone is searching for the top crypto presale to buy now, but only those who act early catch the real lift-off. Picture a project that fuses meme power with mechanical precision, where every stake, burn, and trade drives the engine higher. MoonBull ($MOBU) is that spark. Built on Ethereum, this meme-born beast rewards conviction with transparency and delivers long-term growth without gimmicks. It’s not about hype alone; it’s about a self-sustaining system where liquidity deepens, holders earn passively, and every transaction strengthens the ecosystem. While Ripple and Cardano are making steady progress in their respective fields, MoonBull’s presale has become the community magnet of 2025, a project blending cinematic meme energy with technical muscle. MoonBull’s 95% APY and Ethereum Foundation Make It the Top Crypto Presale to Buy Now MoonBull’s secret lies in structure. From staking to liquidity, every part of its ecosystem is coded to reward holders and build momentum. At the heart of it is the 95% APY staking system, a mechanism that generates passive income while maintaining liquidity. This isn’t an empty promise; it’s backed by a massive 14.6B $MOBU staking pool that rewards patience and participation in equal measure, making MoonBull the top crypto presale to buy now for investors seeking both long-term value and structured growth. At Stage 10, staking activates, letting holders earn daily rewards directly from their dashboard. There’s no waiting, no complexity, just simple, measurable growth. Rewards have a brief 2-month lock, but flexibility remains at all times, giving every participant control over their earnings. Whether it’s a first-time investor or a seasoned trader, everyone gets a fair shot at returns. What truly makes MoonBull unique is that its design benefits the community with every move. Each sale channels…

Author: BitcoinEthereumNews

2025/11/10

This $0.035 Crypto Surpasses Shiba Inu (SHIB) in Utility, Here’s Why It’s a Must-Buy in Q4 2025

This $0.035 Crypto Surpasses Shiba Inu (SHIB) in Utility, Here’s Why It’s a Must-Buy in Q4 2025

As the market readies itself for yet another price explosion that is expected as we enter into 2026, investors are no longer focused on a project solely on hype, but on achieving sustainable projects that have tangible applicability and value in today’s world. And this is exactly why Mutuum Finance (MUTM), going for just $0.035, […]

Author: Cryptopolitan

2025/11/10

DeFi Market Experiences Sharp TVL Decline Across Major Blockchains

DeFi Market Experiences Sharp TVL Decline Across Major Blockchains

TLDR Ethereum’s TVL drops 13% to $74.2 billion, still holding 62% market share. Solana and Arbitrum each face 14% declines in DeFi TVL, reflecting market slowdowns. Balancer suffers a $120 million exploit due to a rounding error in smart contract. Stream Finance loses $93 million, causing Elixir to shut down deUSD stablecoin. The DeFi sector [...] The post DeFi Market Experiences Sharp TVL Decline Across Major Blockchains appeared first on CoinCentral.

Author: Coincentral

2025/11/10

DeFi TVL Declines $22 Billion Over the Past Week, Wiping Major Gains From Q3 2025

DeFi TVL Declines $22 Billion Over the Past Week, Wiping Major Gains From Q3 2025

TVL in DeFi projects has dropped by $22 billion in the past week, erasing significant gains recorded in September and October. According to data shared today by market analyst Crypto Patel, the week experienced double-digit TVL declines across major chains as panic grips investors amid heightened market volatility. The drop in TVL is mainly driven by the broader macroeconomic concerns as reflected in the downturn in the larger crypto market. BTC and ETH, which currently stand at $102,042 and $3,429, have been down 7.9% and 11.9% over the past week, respectively, indicating significant sell-offs in multiple crypto assets. DeFi Meltdown: Liquidity Drains, Confidence CracksThis week saw double-digit TVL drops across leading chains as market volatility hit hard:#Ethereum: -14%#Solana: -12%#BNBChain: -12%Total DeFi liquidity continues to shrink as capital rotates out, signaling cautious… pic.twitter.com/Aqs4EpgDuz— Crypto Patel (@CryptoPatel) November 9, 2025 DeFi TVL Drops to Current Low of $131.10 Billion As reported in the latest DeFiLlama metrics, DeFi TVL climbed to $166.446 billion on October 10, 2025, the highest level since June 20, 2022. The catalyst behind the wider DeFi ecosystem’s growth (noted in the last three months) was increased activity in borrowing, lending, and DEX trading. Regulatory clarity from US lawmakers and positive macroeconomic trends experienced mid this year triggered renewed investor enthusiasm in the DeFi market.  The U.S. House of Representatives passed three bills in mid-July, including the CLARITY Act, the Anti-CBDC Surveillance State Act, and the stablecoin Genius Act. Subsequently, President Trump signed the GENIUS Act into law on July 18. The DeFi landscape became on fire from July 20 to October as TVL grew by more than 54.44%, reaching a high of $166.44 billion on October 10, according to DeFiLlama data. This surge reflected heightened investor interest, fresh liquidity, and increased user demand across trading, lending, and tokenized assets. However, the DeFi TVL started declining since October 10, triggered by the escalation of the US-China trade tariff war. Both TradFI and DeFi markets have been affected by renewed macroeconomic volatilities, including geopolitical instabilities and trade policies, causing bearish sentiment among investors. The price falls in prominent crypto assets like BTC, ETH, SOL, and BNB have further triggered the drop in DeFi’s TVL. Ethereum, Solana, and BNB As reported by the analyst, Ethereum, the largest chain by TVL, led the decline, erasing $10.39 billion over the past week. This brings its total TVL to $74.20 billion currently. Solana saw a 12% weekly fall, making its TVL currently stand at $9.969 billion. BNB also recorded a drop in TVL over the week, down 12% to $7.688 billion TVL currently.   As the top three projects for DeFi utilities, Ethereum, Solana, and BNB are typically considered as major indicators of broader DeFi activity.

Author: Coinstats

2025/11/10

Bitcoin Price Prediction: RSI Indicator Suggests Fresh Rally to New ATHs, but Traders Are Buying This Top Crypto for Bigger Returns

Bitcoin Price Prediction: RSI Indicator Suggests Fresh Rally to New ATHs, but Traders Are Buying This Top Crypto for Bigger Returns

There are signs of a potential new rally in Bitcoin (BTC). Some analysts say that if this continued and maintained its support floor, then it could be on its way towards breaking through all-new highs once again soon. Yet, despite this optimistically promising development, most market speculators currently have their eyes on other opportunities, ones […]

Author: Cryptopolitan

2025/11/10

Whitelist Closes, Presale Goes Live: Milk Mocha’s $HUGS Token Becomes Crypto’s Sweetest Global Success!

Whitelist Closes, Presale Goes Live: Milk Mocha’s $HUGS Token Becomes Crypto’s Sweetest Global Success!

What started as a simple comic about two lovable bears has become one of the most talked-about presales in the […] The post Whitelist Closes, Presale Goes Live: Milk Mocha’s $HUGS Token Becomes Crypto’s Sweetest Global Success! appeared first on Coindoo.

Author: Coindoo

2025/11/10

Why Ripple (XRP), Shiba Inu (SHIB), and Mutuum Finance (MUTM) Are The Best Cryptos To Buy

Why Ripple (XRP), Shiba Inu (SHIB), and Mutuum Finance (MUTM) Are The Best Cryptos To Buy

The post Why Ripple (XRP), Shiba Inu (SHIB), and Mutuum Finance (MUTM) Are The Best Cryptos To Buy appeared on BitcoinEthereumNews.com. Investors are always on the lookout for the best cryptos to buy, based on a mix of proven potential and innovative opportunities. Although cryptocurrencies such as Ripple (XRP) and Shiba Inu (SHIB) have increasingly impressive technical and fundamental changes, a new player on the market, Mutuum Finance (MUTM), is making its mark on why it should occupy one of the ‘best’ spots on any serious investor’s list. This pioneering defi crypto project is not only leveraging market trends but is actually trying to develop a sustainable ecosystem, and this itself is a big reason why it is actually the best crypto to invest in for substantial gains. Its presale records are testimony to a market confidence that could precede a potential market breakout. Ripple (XRP): Finding Ways Past Resistance Ripple’s XRP is currently battling a crucial resistance point in its fight for a recovery following a recent correction. It is approaching stability after establishing a floor at around $2.066, and its fight for a recovery is based on a breakout above the strong resistance at $2.30. Technical indicators highlight that a bear trend line is being established at $2.25 on the hourly charts, presenting an outright ceiling. If this resistance is pushed through successfully, it may spark a break-out towards $2.36 and could reignite a rally towards the crucial $2.50 mark once again. But its price trend still has a strong correlation with market sentiment, especially that of Bitcoin, and is quite unclear as of now. If one is about to invest in any crypto today, one may have brand awareness associated with XRP but is limited due to market fluctuations. Shiba Inu (SHIB): Institutional Acceptance Brings About Shiba Inu is seeing a notable buying vista following a historic event. T Rowe Price, a fund manager that handles a staggering…

Author: BitcoinEthereumNews

2025/11/10

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