Goldman Sachs Says DeFi’s Interconnections Can Increase Systemic Risk

Goldman Sachs Says DeFi’s Interconnections Can Increase Systemic Risk

The collapse in UST hit stETH, with the token trading at a 4.5% discount to ETH, Goldman said. That’s because stETH holders were able to convert their tokens into bonded ether (bETH) and earn rewards on Terra’s Anchor Protocol. As a result stETH was vulnerable to Terra blockchain halts, which impact withdrawals, according to the report.

Originally Posted on: https://www.coindesk.com/markets/2022/05/23/goldman-sachs-says-defis-interconnections-can-increase-systemic-risk/?utm_medium=referral&utm_source=rss&utm_campaign=headlines
By: Will Canny

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