Goldman Sachs Says DeFi’s Interconnections Can Increase Systemic Risk

The collapse in UST hit stETH, with the token trading at a 4.5% discount to ETH, Goldman said. That’s because stETH holders were able to convert their tokens into bonded ether (bETH) and earn rewards on Terra’s Anchor Protocol. As a result stETH was vulnerable to Terra blockchain halts, which impact withdrawals, according to the report.

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