Market Maker Flowdesk Says Crypto Credit Is Finding a Fragile Balance
Crypto credit markets are deleveraging following recent defaults, but borrowing demand for major assets remains robust, suggesting a fragile balance.Summary
Market maker Flowdesk reports that following recent events like Stream Finance's default and the October crypto crash, digital-asset lenders are reducing risk, leading to deleveraging flows as counterparties reassess positions. Despite this, borrowing demand for major cryptocurrencies such as SOL, BTC, XLM, ENA, and APT remains strong, primarily for hedging and funding strategies rather than speculative bets. Yields on low-risk lending pools like Maple and Jito have compressed but remain significantly higher than traditional benchmarks like the Chainlink DeFi Yield Index or 10-year treasuries. While capital is rotating out of riskier pools, some counterparties are adding leverage focused on majors, indicating that credit has not frozen, though the overall market positioning is defensive as participants await a clearer rebound.
(Source：CoinDesk)