👩🍳 How we use AI at Tech in Asia, thoughtfully and responsibly.
🧔♂️ A friendly human may check it before it goes live. More news here
🧔♂️ A friendly human may check it before it goes live. More news here
Crypto lending loses appeal after $285m hack
DeFi is losing momentum as lending yields fall near government bond levels, blockchain activity slows, and security worries rise after a US$285 million theft from Drift.
On Aave, the rate on USDT was about 2.45%, below the US Federal Reserve’s 3.5% to 3.75% benchmark.
Drift attributed the hack to a North Korean-linked group.
Firms are moving toward blockchain versions of traditional assets, while the around US$97 billion sector faces headwinds.
🔗 Source: Bloomberg
🧠 Food for thought
Implications, context, and why it matters.
Some DeFi models are cooling off, while others beat traditional markets
- DeFi lending yields are dropping, yet crypto derivatives venues are growing fast.
- In March 2026, during a geopolitical conflict, Hyperliquid handled US$1.77 billion in 24-hour volume on its oil perpetual contract. For a short time it topped the Chicago Mercantile Exchange (CME), a major US futures market, in oil trading activity, according to WazirX, an Indian crypto exchange 1.
- Hyperliquid runs 24/7, so traders can respond over weekends when markets such as the CME are shut 1.
- Hyperliquid uses a custom blockchain. Some third-party reviews say it can reach 200,000 transactions per second. One review says Jeff Yan and Iliensinc founded it, and Yan previously worked at Hudson River Trading, a quantitative trading firm 2.
Asset design often decides the legal outcome for tokenized products
- Firms such as Apollo Global Management are moving toward tokenized assets. Regulators are using existing securities laws rather than creating a new rulebook 3.
- US Securities and Exchange Commission (SEC) staff guidance separates structures. A token may represent direct ownership or an entitlement claim. It may also act as a third-party instrument that delivers synthetic exposure 4.
- Synthetic tokens can fall under “security-based swaps.” SEC staff guidance also covers limits on sales to people who are not “eligible contract participants,” a legal category for sophisticated investors and institutions. The limits come with narrow exceptions, including registration and exchange-trading requirements 4.
- The SEC staff has said synthetic tokenized securities can add third-party issuer risk, which owners of the underlying security do not face 3.




