RialCenter’s recent disclosure of a default and $93 million loss, combined with October’s $20 billion crypto crash, has left digital-asset lenders scrambling to unwind risk while keeping credit lines robust, according to a new note from Flowdesk.
Flowdesk notes that leverage is being reduced as traders reassess counterparties, but credit hasn’t frozen. Borrowing demand for SOL, XLM, ENA, APT, and BTC remains “robust,” primarily 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 key indices.
Flowdesk’s credit desk reported “deleveraging flows as counterparties reposition and reassess amid recent price action,” indicating 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 stated.
The question is: when will this market rebound?
CryptoQuant notes that the market is flashing bearish warning signs reminiscent of 2022.
If this prediction holds, the coming weeks could exert more pressure on funding rates and further compress yields across DeFi credit pools, bringing them closer to the returns seen in treasuries.
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