Risk analysis of investment strategy, economy.

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Crypto lending is returning, but the shape of its recovery reflects an unresolved argument over how risk should be priced.

The last cycle made one thing obvious. Risk was often hidden behind yield, and when markets turned, that structure did not hold, whether through centralized lenders like Celsius and BlockFi or DeFi protocols that failed under stress. What is less clear is what replaces it.

“There is a major difference between opaque yield platforms and properly structured secured lending,” said Himanshu Sahay, co-founder of Arch Lending. That is one reading of what went wrong.

Fixing What’s Broken

At one end of the market, lenders like Arch Lending are rebuilding around tighter…