DeFi’s 2022 Collapse Could’ve Been Avoided—If Only It Had This One Thing

DeFi's house of cards came crashing down in 2022—but the wreckage might've been prevented.

The missing piece? Real risk management.

Yield farms promised unsustainable APYs. Algorithmic stablecoins collapsed under their own contradictions. And leverage? Don't get us started. The sector operated like a hedge fund with the risk controls of a 2017 ICO.

Where traditional finance has circuit breakers, DeFi had... optimism.

Smart contracts executed flawlessly—right up until they vaporized billions. Oracles kept prices accurate—except when they didn't. The system worked perfectly until suddenly, catastrophically, it didn't.

Three years later, the scars remain. TVL still hasn't recovered its ATH. Institutional players treat DeFi like a radioactive meme stock. And yet—the true believers keep building, this time with actual safeguards.

The irony? Wall Street's boring old risk models might've saved crypto's most revolutionary sector.

Next time maybe they'll listen. (Or not—this is crypto after all.)