DeFi Risk Curators Face Reckoning After String of High-Profile Collapses

DeFi's risk curators have been under scrutiny since the collapse of several high-yield vault tokens last year, resulting in significant losses for investors.

MEV Capital, a prominent DeFi risk curator, has recently dissolved after its assets under management dropped by 80%, from $1.5 billion to $300 million.

The decline was largely due to the firm's exposure to looped-leverage yield strategies involving deUSD, which depegged in early November following the collapse of Stream Finance.

Other DeFi risk curators have been accused of withholding information and downplaying risks, fueling concerns about the sector's governance and accountability.