“DeFi lenders are deleveraging but not retreating, with borrowing demand for majors like SOL and BTC staying firm and yields compressing across Maple and JitoSOL.”, — write: www.coindesk.com
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- Stream Finance disclosed a $93 million loss amid a $20 billion crypto crash, causing lenders to reassess risks.
- Despite market turbulence, borrowing demand for major cryptocurrencies remains strong, driven by hedging and funding strategies.
- Yields in low-risk lending pools have compressed but remain stable, with defensive positioning prevalent in the market.
Flowdesk says leverage is getting reduced as traders reassess counterparties, but credit hasn’t been frozen. Borrowing demand for SOL, XLM, ENA, APT and BTC remains “robust,” Flowdesk wrote, mostly tied to hedging and funding strategies rather than directional bets.
Yields for low-risk blue chip lending pools like Maple and Jito have seen compression, but remain stable and well above the Chainlink DeFi Yield Index of 5% and 10-year treasury yields.
Flowdesk’s credit desk said it has observed “deleveraging flows as counterparties reposition and reassess amid recent price action,” noting that while capital is rotating out of riskier pools, “a few counterparties have stepped in to add leverage at current levels, focused on majors.”
“Overall, rates and yields have compressed across the board, with widespread defensive positioning and many participants sidelined, awaiting a clearer market rebound,” the firm wrote.
The question is: when will this market rebound?
CryptoQuant says the market is flashing bearish warning signs like it did in 2022.
If that crystal ball proves right, the coming weeks could put more pressure on funding rates and further compress yields across DeFi credit pools, bringing them closer to what treasuries earn.
A deep dive into Zcash’s zero-knowledge architecture, shielded transaction growth, and its path to becoming encrypted Bitcoin at scale.
- Shielded adoption surgedwith 20–25% of circulating ZEC now held in encrypted addresses and 30% of transactions involving the shielded pool.
- The Zashi wallet made shielded transfers the default, pushing privacy from optional to standard practice.
- Project Tachyonled by Sean Bowe, aims to boost throughput to thousands of private transactions per second.
- Zcash surpassed Monero in market share, becoming the largest privacy-focused cryptocurrency by capitalization.
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Tesla’s shareholder approval — with over 75% support — follows months of debate over Musk’s expanding influence across Tesla, xAI, SpaceX, and X (formerly Twitter).
- Tesla’s board approved a $1 trillion pay package for Elon Musk, sparking a surge in new memecoins.
- Tokens like “TRILLIONS” and “Elon’s $1” appeared on various blockchains, with some seeing significant trading volume.
- Many of these tokens quickly lost value as creators executed exit scams, reflecting a common pattern in crypto markets.
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