DeFi isn't more extreme. Most of it is by necessity fully- or over-collateralized, making cascading systemic failure much less likely, if not impossible. Pegg

DeFi isn't more extreme. Most of it is by necessity fully- or over-collateralized, making cascading systemic failure much less likely, if not impossible. Pegged stablecoins are not DeFi. I would argue the collateralized parts of DeFi are currently more stable than CeFi, and closer to narrow banking/full reserve banking than anything else available right now. https://www.narrowbanking.org/ https://www.narrowbanking.org/ Caveat - the main problem with DeFi is that Solidity and the EVM are garbage and give programmers too many footguns to accidentally shoot themselves with. Most DeFi failures have been a result of those languages being based on Javascript (wtf!) and prioritizing familiarity and ease of use over security, correctness, and provability. But there are other more solid platforms for DeFi, and better and better tooling for EVM-based DeFi.