{"id":462204,"date":"2022-06-13T20:00:00","date_gmt":"2022-06-13T17:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/crypto-crash-wreaking-havoc-on-defi-protocols-cexs\/"},"modified":"2022-06-13T20:00:00","modified_gmt":"2022-06-13T17:00:00","slug":"crypto-crash-wreaking-havoc-on-defi-protocols-cexs","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/crypto-crash-wreaking-havoc-on-defi-protocols-cexs\/","title":{"rendered":"# Crypto crash wreaking havoc on DeFi protocols, CEXs"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2d13de0cad0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2d13de0cad0\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-crash-wreaking-havoc-on-defi-protocols-cexs\/#%E2%80%9D_Crypto_crash_wreaking_havoc_on_DeFi_protocols_CEXs_%E2%80%9C\" >&#8221; Crypto crash wreaking havoc on DeFi protocols, CEXs  &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Crypto_crash_wreaking_havoc_on_DeFi_protocols_CEXs_%E2%80%9C\"><\/span>&#8221; Crypto crash wreaking havoc on DeFi protocols, CEXs  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvZmY5YmYxNmMtNjg4OC00NmUxLTkyOTktMWE0Nzk2ZmRmOGYyLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>On Monday, a heavy cryptocurrency sell-off in the markets caused significant ripples for projects and entities alike. On popular decentralized finance, or DeFi, lending protocol Aave (AAVE), utilization rates have fallen across nearly all stablecoin borrowings. Most notably, borrowings for Binance USD (BUSD) now <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/classic.aave.com\/#\/reserve-overview\/0x4fabb145d64652a948d72533023f6e7a623c7c53-0x4fabb145d64652a948d72533023f6e7a623c7c530xb53c1a33016b2dc2ff3653530bff1848a515c8c5\">stand<\/a> at a mere 30% compared to a high of 80% back in May.\u00a0<\/p>\n<p>The utilization rate is the ratio of borrowed to deposited funds. Since borrowers are required to post digital asset collateral before taking out a loan on Aave, users are likely withdrawing en mass in light of Monda&#8217;s sell-off to prevent liquidation. Data from DeFi Llama indicates that Aave&#8217;s total value locked has fallen from $33.51 billion last October to $8.11 billion.<\/p>\n<p>According to CryptoRank Platform, TVL in overall DeFi protocols has\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoRank_io\/status\/1536318385109229569\">fallen<\/a> by 55% since the end of April, driven, in part, by capital flight and a decrease in the value of digital assets. Currently, there is $115.7 billion worth of funds remaining, with $72 billion of t located on the Ethereum (ETH) blockchain. It represents a fraction of the $303.9 billion in peak TVL witnessed in November 2021.\u00a0<\/p>\n<p>Over the weekend, cryptocurrency exchange Crypto.com <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/kris\/status\/1535431489315213312\">announced<\/a> that it was laying off 260, or 5%, of its corporate workforce, citing difficult market conditions. Just last month, the company also stated that it was significantly cutting back rewards for its popular crypto-backed debit card. Annual cash-back APYs for spending have reportedly been <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.zdnet.com\/finance\/credit-cards\/crypto-com-is-significantly-lowering-the-rewards-of-its-popular-debit-cards\/\">scaled<\/a> back from 2% to 8% to just 0% to 2% for cardholders with unstaked assets.\u00a0<\/p>\n<p>In an emotional message <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blockfi.com\/a-message-from-our-founders\">posted<\/a> by founders Monday morning, BlockFi also announced that it was laying off 20% of its 850-strong staff. The firm cites the need to achieve profitability goals for the long haul in making the decision. Similarly, cryptocurrency exchange Coinbase has decided to extend a hiring freeze and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/interest&gt;attract%20deposits\">rescinded<\/a> job offers to hundreds of new hires. Though Brian Armstrong, its CEO, has said that &#8220;funds are safe&#8221; amid bankruptcy protection fears surrounding the exchange. Other major crypto firms are reportedly cutting 10% of their staff amid the ongoing bear market.\u00a0<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/crypto-crash-wreaking-havoc-on-defi-protocols-cexs\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Crypto crash wreaking havoc on DeFi protocols, CEXs &#8220; On Monday, a heavy cryptocurrency sell-off in the markets caused significant ripples for projects and entities alike. On popular decentralized finance, or DeFi, lending protocol Aave (AAVE), utilization rates have fallen across nearly all stablecoin borrowings. Most notably, borrowings for Binance USD (BUSD) now stand&#8230;<\/p>\n","protected":false},"author":1,"featured_media":462205,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvZmY5YmYxNmMtNjg4OC00NmUxLTkyOTktMWE0Nzk2ZmRmOGYyLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,74863,74868,75917,73711],"class_list":["post-462204","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-cryptocurrencies","tag-defi","tag-exchanges","tag-investments"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/462204","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=462204"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/462204\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/462205"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=462204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=462204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=462204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}