In May of 2022, the collapse of the Terra stablecoin and its Anchor protocol set in motion a string of margin calls and insolvencies, exposing systemic risks in the market, ringing the alarm for risk management and increased diligence, and highlighting the difference between Centralized Finance (CeFi) and Decentralized Finance (DeFi).
In this report, we reflect on the current state of Decentralized Finance (DeFi) and the challenges and opportunities for institutional investors, using recent events to better understand the structure of the crypto ecosystem.
Here is an overview of the topics covered in the report: