The fallout from FTX’s collapse is just starting and within decentralized finance, platforms enabling unsecured loans are the most exposed.
The fallout from FTX’s collapse is just starting and within decentralized finance, platforms enabling unsecured loans are the most exposed relative to collateralized counterparts with millions in loans on the line, while total value locked slides.
Alameda Research owes various unsecured DeFi lenders at least $12.8M. While a relatively small figure, it accounts for about 7% of $176.8M in total value locked for those protocols. Major players in the space like TrueFi, dAMM Finance and Clearpool have all seen their TVL drop by over 40% in the last week — TrueFi led the way down, with its TVL dropping 71% to $12.4M.
Alameda Research, which is one of the 130-plus entities under the FTX group that filed for chapter 11 bankruptcy Friday, owes Apollo Capital, an investment firm, $3M. It also owes Compound Capital Markets, another investment fund, $2.5M. Clearpool, a platform which enables loans to institutions, facilitated both loans.
Alameda also owes $7.3M on two loans via TrueFi. The loans’ maturity date is Dec. 20.
Maple Escapes Disaster
Maple Finance, a platform similar to Clearpool, appears to have escaped disaster, with its delegates, who manage the lending pools, closing all loans to Alameda in September, according to a post from the company.
At one point, Alameda borrowed a total of $288M through Maple, Charlotte Dodds, marketing lead at the company, told The Defiant.
Maple is by far the largest project in the unsecured lending category with $135.7M in TVL.
Orthogonal Capital, which used Maple to lend to Alameda, said it terminated its relationship with the firm, citing declining asset quality, and unclear capital policy, among other concerns.
Alameda owes $10B to FTX, according to The Wall Street Journal. So the known $12.8M is a relatively small amount.
DeFi Llama founder, 0xngmi, cited a lack of confidence in lending to…
