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Recently, the two DeFi projects Stream Finance and Elixir have triggered a series of DeFi crises.
The main reason is that the external fund managers of Stream Finance caused a loss of $93 million in assets due to high-risk operations.
As a result, multiple related DeFi protocols have encountered issues such as inability to withdraw and stablecoin de-pegging. I have friends around me who have fallen victim to this, unable to withdraw their principal.
Due to the losses suffered by these DeFi protocols, in the face of huge losses, some protocols turn a deaf ear while others freeze assets.
Among them, @YeiFinance's handling method is considered acceptable.
No loss of contact, a solution was tweeted within 1 day of the problem occurring.
I checked, Yei Finance has a loss of about 8.6 million dollars.
The team's approach is to implement a 1:1 compensation mechanism, fully repaying the affected debt of 8.6 million dollars, allowing users' USDC deposits to be withdrawn at any time.
This open and transparent way of handling things is what is normal. Some DeFi protocols really need to learn from this; if it continues like this, no one will dare to play.