Analysis: The market plunges "the scourge" of DeFi, which will be more resistant after the market is perfected

The market massacre on March 12 not only had a ripple effect on the entire industry, but also caused many people to question the fate of the cryptocurrency industry. In fact, major crypto-related platforms suffered terrible setbacks as the crypto market fell from March 12-13.

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Source: Pixabay

Ethereum's DeFi platform has been hit particularly hard.

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Source: DeFi Pulse

According to data provided by DeFi Pulse, from March 12th to 13th, the total value of DeFi lock-in (TVL) in US dollars fell by more than 300 million US dollars, from approximately 889 million US dollars to 556 million US dollars. It must be noted that as the price of Bitcoin stabilized, as of press time, there was a slight rebound on the chart, rising to $ 656 million. However, TVL is still well below previous figures this year.

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Source: DeFi Pulse

As of press time, the total amount of MakerDao DAI locked on DeFi fell from $ 83.64 million to $ 48 million, which was severely affected. As a result, Maker has depreciated by 9.9% in the past 24 hours.

Stakeholders on a conference call on Thursday said that the drop in Ethereum price after the Bitcoin crash was a real test of DeFi lending, and MakerDAO continues to consider handling emergency shutdowns.

DeFi Oracle, which sent feed information to traders during the aforementioned price crash, was unable to keep up. As a result, Oracle cannot process accurate data to the trader, thereby limiting the user's ability to execute transactions without paying artificially high transaction fees.

In fact, due to Oracle's price problem, MakerDAO's agreement has been greatly affected. MakerDAO's blog reports that

"Details on the feed delay issue itself are still under investigation and will be shared and resolved as soon as possible."

Despite these concerns, the blog added that at the time of writing, the market was healthy and discussions about the emergency shutdown of the network had stopped. According to the white paper, for the lost DAI, the agreement will mint and sell MKR tokens to re-collateralize to the system.

WBTC

Source: DeFi Pulse

The market crash also affected WBTC's TVL, which dropped from $ 7.13 million to $ 4.63 million. Although the DeFi platform has been shaken by the market crash, MakerDAO believes that the ecosystem has been able to withstand turbulence, and the situation will return to normal over time.