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2024-11-08 11:26:21
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cointelegraph.com11 on Nostr: High-risk decentralized finance (DeFi) loans have seen a significant increase since ...


High-risk decentralized finance (DeFi) loans have seen a significant increase since the US presidential election, with data showing a potential warning sign for crypto markets. These loans are collateralized by volatile assets and are often used by investors to capitalize on price volatility. While mass liquidations of high-risk DeFi loans can have an impact on the wider cryptocurrency market, experts believe the industry's maturity will help stabilize it against downturns. The DeFi industry has implemented measures to mitigate risks, such as asset maximum caps and isolated pools.

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