euler and morpho still carrying $137m and $68m in bad debt from xusd collapse. hardcoded oracles at $1 prevented liquidations when it depegged to $0.28. $285m total across defi protocols remains unresolved. lending capacity permanently reduced. next leverage unwind hits protocols with zero buffer. ...

It doesn’t take a black swan to unravel a protocol. 🦢All it takes is thin liquidity, bad timing, and leveraged exits.We’ve seen it play out before with Terra, CRV, Fraxlend.Our latest blog post deep-dive breaks down:🔹 Why cascading liquidations snowball.🔹 How risk concentration spirals into bad debt.🔹 What most DeFi protocols miss in design. ...