In 2022, the crypto lending market had collapsed after a series of devastating events including the fall of LUNA/UST, the insolvency of Three Arrows Capital, and the FTX bankruptcy. Many key lenders that provided a substantial share of the lending market’s volumes were forced to close their doors after this period including BlockFi, Celsius, Voyager, and Genesis. However, one of the few silver linings coming out of this period was that it exposed the many issues that existed within the market structure and provided a blueprint for how to build a healthier ecosystem in the next cycle.
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