🚨 It feels like something big is going to happen in Decentralized Finance ( with a strange aura ).

In particular, we see that platforms like Compound, Lista, Silo, Morpho, Ethena Labs (USDe), Stream Finance (xUSD), and other similar Curator/lending platforms have obvious deficiencies in transparency and liquidity.

At the same time, the utilization rate of various borrowing assets has surged to levels between 95% and 100%, which actually means: if you want to withdraw or cash out → it may become difficult.

Currently, although there is no widespread panic, once panic spreads = bank run is initiated → bank run → a series of mismatches begins.

In this cycle, the entire DeFi "Lego" model has become too intricate, with various protocols referencing each other; if one link fails, all will fail. AAVE's market cap has reached 60 billion USD, but the underlying Core assets are looping at a very high rate.

Reminder to everyone: When chasing high yields and high usage, be aware of the underlying structural risks.

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🔍 A few points behind that are worth emphasizing:
•Stream Finance has announced a loss of approximately $93 million and has suspended deposits and withdrawals.
•At the same time, investigations have revealed that the lending/stablecoin exposure involved exceeds 284 million USD, and the risk may spread to multiple protocols.
•The liquidity and structural issues of Compound, Silo, and various lending platforms.

It is no longer just a matter of looking at "high interest rates" and "large usage"; rather, we need to ask ourselves: "What will happen to this entire leverage/interconnected structure if I can't withdraw/if I can't mine/if the borrower defaults?"

The era of Decentralized Finance is indeed here, but the Lego is too chaotic, and the base is too fragile, which should alert all participants.🫡