The concerns of the DeFi chain reaction crisis are spreading, and there may be more hidden crises beneath the surface.

On November 7, recent concerns about a chain liquidation in DeFi bringing more liquidity crises have spread in the encryption community. On November 3, Stream Finance suddenly announced the suspension of deposits and withdrawals, pushing a storm that swept through the DeFi world to a climax. An external fund manager experienced a get liquidated during the sharp market fluctuations on October 11, resulting in approximately 93 million USD in fund asset losses. The entire DeFi ecosystem may face a systemic crisis of 8 billion USD in Total Value Locked (TVL), with only about 100 million USD in losses reported so far. The DeFi liquidity protocol Elixir has been burdened with a risk exposure of 68 million USD, and Morpho's co-founder responded to the lack of liquidity in some liquidity pools, stating that it is not a system flaw. Stablecoin yields have experienced the largest weekly capital outflow since the Luna collapse, totaling 1 billion USD, while the market capitalization of the star stablecoin product USDe issued by Ethena Labs has also dropped below 9 billion USD, falling about 45% in the past month. To cope with the liquidity crisis, Compound has suspended multiple stablecoin lending markets on Ethereum, and the stablecoin USDX under Stables Labs also significantly depegged and dropped to 0.314 USD early this morning. Is the crisis brought about by asset leverage cascading and management opacity only a tip of the iceberg? More detailed reports can be seen in “The Potential 8 Billion USD Thunder in DeFi, Only 100 Million Has Exploded So Far.”