📌 Compound Suspends Stablecoin Lending: DeFi Risks Exposed, Funds are Reassessing Choices

Recently, the DeFi lending market has attracted attention again.
Compound has temporarily suspended some lending functions for stablecoin markets, which is not a trivial matter but rather a real liquidity alert.

1. What happened?
Research institution Gauntlet has proposed urgent risk recommendations to Compound:
Due to the difficulties in exchange and funding gaps related to the Elixir ecosystem, it may trigger a chain risk.
Therefore, Compound has officially executed:

Temporarily suspend lending operations of USDC and USDS in the independent lending pool (Comet).

This is not about stopping services, but rather proactively pulling the plug to cool down and avoid further risk spread.

2. Where exactly is the problem?
The source of the incident points to the liquidity depletion in the Elixir ecosystem.
Previously, Stream Finance exposed a loss of about 93 million dollars, of which the Elixir portion was about 68 million dollars.
This has led to the emergence of some stablecoins (such as dUSD, sdeUSD):

Exchange difficulties

Insufficient asset support

User withdrawal risk intensifies

In one sentence:
Stablecoins are no longer stable in certain scenarios.

3. What does this mean for the market?
This matter is not a bearish "market", but a bearish "illusion".
When certain projects face liquidity pressure, funds will rethink:

Where is my money safe?

What assets are truly risk-resistant?

Then, a familiar phenomenon will appear:

Funds are flowing back from high-risk DeFi and long-tail assets to mainstream varieties (BTC / ETH).

The more turbulent the times,
The market will eventually return to the assets with the strongest consensus.

IV. Insights on the Current Market Trends
The current market is not in a bad state, but is undergoing a turnover + shaking off floating chips.

The mainstream trend has not changed.

Just as the rise is no longer completed in one go.

Only those who can withstand the market correction are qualified to ride the main upward wave.

The ones who really make money are not the ones who are the best at trading.
but rather those who can hold their positions and not get shaken out.

5. Operational Recommendations

Do not chase highs

Don't gamble.

Callback batch absorption

Mainstream first > Genre second > Long tail last

The trend is still there, but the rhythm has changed.

6. A bull market is not a straight line, but a journey that tests patience and understanding.
Short-term fluctuations are meant to loosen positions;
Long-term rises are only left for those who can truly stand firm.
Staying steady is more important than anything else.

Disclaimer
The content is for market observation only and does not constitute investment advice.
Please make independent decisions based on your own risk tolerance.