Part 6/7:
The report sheds light on the lessons learned from past failures in CFI lending. Notorious for poor risk management practices, institutions like BlockFi and Celsius suffered from a lack of diligent borrower vetting, exposing themselves to significant losses. Moving forward, the lending industry is poised for positive changes, driven by enhanced self-regulation and improved risk assessment.
The future of lending, particularly in a DeFi context, also hinges on the growing interest of institutional players. As regulations stabilize and banks enter the crypto lending space, access to capital may improve, driving innovations like tokenized debt that enhances transparency and lowers costs.