I can only say, DeFi, as the sector in the crypto space closest to money, having these kinds of issues so frequently is just ridiculously absurd! If you put $100 million on-chain, with an on-chain safe interest rate of around 3%-5%, you’d earn $3–5 million in interest annually. In theory, just one incident like KelpDao could wipe out several years of earnings, or even leave you unable to recover your principal. What’s even crazier is that funds are constantly exposed to this kind of risk model! Right now, nearly $10 billion in DeFi TVL has evaporated in panic. It’s time to seriously rethink and overhaul the standards for onboarding assets. A lot of lending protocols talk about expansion, but what they’re really doing is underwriting the quality of upstream assets on their books, essentially consolidating external risks into their own balance sheets. Here are some straightforward data comparisons— Aave: Supports nearly 50 types of collateral assets, mixing long-tail, wrapped tokens, and stablecoins all together. Spark: So far, only supports around 7 core assets. Back in January, @sparkdotfi already dealt with low-utilization, high-tail-risk assets like rsETH by either deprecating them or applying equivalent risk mitigation measures—either deprecated or set to nearly 0% LTV / isolated mode. That’s why they weren’t affected this time. No wonder Brother Sun @justinsuntron urgently moved $125 million worth of ETH over to Spark. If I were a whale, I’d also stay far away from all the flashy stuff—reduce variables, reduce scenarios, reduce uncertainties!