A Reflection on Liquidity Dynamics Through the Contagion and GHO Stablecoin

Jul 22, 2022 • 9 Min Read
Seeing the CeFi realm blowing up around us, it is perhaps pertinent to reflect and hammer the lessons into our collective crypto consciousness. Drawing from CeFi, DeFi and Everything in Between, it is clear now that Celsius, BlockFi, and Voyager Digital function as ‘CeDeFi,’ similarly to TradFi banking entities and are prone to the same weaknesses such as position opacity and human greed. These start-ups took in short-term customer deposits, lent to one another, and took on assets with longer durations[1] from their liabilities in an attem...

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