DeFi lending didn’t fail because of lack of capital. It failed because risk was treated as a parameter instead of a system.
Early platforms assumed over-collateralization and liquidation bots were enough. They weren’t. Stress events exposed brittle oracle dependencies, reflexive liquidations, and governance delays that turned volatility into protocol-wide failure.
What’s changed now is not “better yields,” but a shift toward risk-aware lending architecture: isolated pools, dynamic collateral rules, real-time oracle redundancy, and protocol-level circuit breakers.
The new generation of DeFi lending platforms is being designed for failure modes first—then growth.
If you’re still building lending logic around static assumptions, you’re already behind the market cycle.