A Call for Enhanced Due Diligence in DeFi and Crypto Finance
The rapid evolution of decentralized finance (DeFi) and crypto lending platforms has introduced transformative opportunities for investors, but it has also exposed systemic risks rooted in opacity. As these platforms grow in complexity and scale, the lack of transparency in collateral management, governance structures, and security protocols creates fertile ground for systemic failures. Recent academic studies and real-world breaches underscore the urgent need for robust due diligence and risk management frameworks tailored to the unique challenges of DeFi and crypto finance.
Structural Opacity: A Double-Edged Sword
DeFi’s promise of transparency through blockchain technology is often undermined by structural weaknesses. For…
