Markets & Risk
There is no doubt that crypto winter has come for the broad crypto market, and for crypto lending in particular. This month we have seen well known platforms (including Celsius, Voyager, BlockFi and others) hit by significant credit losses, deteriorating financial positions, and liquidity gaps. This market impact was exacerbated as individual crypto depositors/lenders adopted to reduce risk by pulling out their crypto from CeFi lending platforms, leading to withdrawals and caps on withdrawals from some of the highest profile platforms in the industry.
While we take no pleasure in the pain that this market has caused, we are pleased that our conservative approach to managing risk has meant that we have not been impacted by
- Failure of any protocols of DeFi, including BadgerDAO
- Failure of any institutional borrowers, including 3AC
- Failure of any lending platforms, including Celsius
As we mentioned in this thread, our only direct exposure (in terms of cryptocurrencies) is limited to Bitcoin, Ethereum and USDT.
We are also pleased that our liquidity management processes have meant that withdrawals have continued to be processed normally even during periods of heightened market sensitivity.
As outlined in the opening section of this update, overall market conditions deteriorated significantly, with prices, volumes, and financing appetite impacted across the board. While we are rightly pleased that unlike many we did not sustain any losses, we did observe a significant reduction in the amount of new business, with new user and new deposit growth down from the growth of previous months. We expect that regaining the momentum across the market will take time, but we also see an opportunity to gain market share from participants who have seen their froth and bubbles burst.
Regardless of the general negative sentiment in the cryptosphere, we are focusing on several avenues to market our lending and borrowing services.
We recently pushed out some market commentary about what is happening in CeFi crypto lending and what may have caused the current insolvencies among some crypto lenders. You can find this piece on Hackernoon via the link here.
Like we mentioned a few updates ago, we are constantly in conversations with crypto interest listing and review sites, and you should see some progress on this front imminently.
Last month, our lending and borrowing rates have been relisted on LoanScan (now part of Linen App) and you can check it out here.
Further, we are now working with Bitcompare to advertise our crypto lending and borrowing services. You can find our page here.
We are also pleased to receive a generally positive review of our platform from The Crypto Adviser. You can check it out here.
On the SEO front, we have added 4 new pages for lending specific coins and borrowing USDT. You can check them out here, here, here and here. We aim to use these pages to beef up our SEO score. Further, we will be building dedicated landing pages depending on the source of site visitor to better serve information about our products and services.
Starting from this month, we will be switching to quarterly reporting, meaning that this type of update will be coming out at the end of every 3rd month. The next platform update will be at the end of September or early October.
You will still receive an email every month about your LND airdrop breakdown and we will also continue posting platform developments on social media and our Telegram in-between the quarterly reporting.