Risks and Transparency in Crypto Credit Markets

Delving into the risks of using wrong-sided collateral in the 2021 crypto credit market, the chapter highlights the importance of transparency and reconsidering acceptable collateral types. It contrasts traditional centralized credit markets with the decentralized nature of crypto credit, emphasizing the significance of risk management and transparency. The discussion also covers the evolution of DeFi lending systems, challenges faced by the sector, and the potential for innovative solutions to enhance protocols.