Midday highlights | Stablecoin compliance does not mean DeFi lending is principal-protected. A November 11 column on CoinDesk reminds us that protections related to the GENIUS Act cannot replace risk management in lending protocols. My view: whether an underlying stablecoin has reserves and whether funds deposited in a protocol can be safely withdrawn are two separate questions. Check separately whether governance can change parameters, whether the oracle is reliable, and whether liquidations can be carried out. The industry’s move toward compliance is progress, but regulatory labels should not be mistaken for deposit insurance. First ask who has the power to change the rules, then look at the yield. Source: CoinDesk, “The GENIUS Act’s guarantees don’t cover DeFi lending.” #DeFi #Stablecoins