Part 3/7:
- Decentralized Exchanges (DEXs): Platforms that facilitate the trading and borrowing of assets, often allowing traders to leverage their positions.
Market Dynamics: The Rise and Fall of Crypto Lending
The report emphasizes that crypto lending took off around late 2019, spearheaded by the advent of Ethereum in 2015, which introduced smart contracts. However, the market faced significant setbacks in 2022 due to numerous black swan events, including the catastrophic failures of key players like Celsius and FTX. As a result, from its peak to the bear market low, crypto lending shrank by approximately 78%, with centralized lending (CFI) taking a heavier hit.