Lessons for DeFi: Collateral Risks and Interconnected Protocols

[madtrader]

The deUSD collapse highlights how losses in one protocol can ripple through the DeFi ecosystem.

Elixir will coordinate with Euler, Morpho, Compound, and other curators to repay and liquidate claims, aiming for a 1:1 redemption for remaining holders.

This event underscores the importance of transparent collateral design, risk management, and inter-protocol dependencies in decentralized finance.

[Nahid Hossen]

Interconnection is both DeFi’s strength and its biggest weakness. ️

[EmTeam]

One bad link can trigger a chain-wide meltdown — risk awareness is key.