DeFi under stress: how protocols behave when no one wants to stay
What happens when liquidity flees reveals more about a protocol than any bull market. During bullish markets, almost all DeFi protocols seem solid. Liquidity flows, incentives work, and metrics grow steadily. But that scenario is misleading. The true test does not occur when capital comes in, but when it tries to exit at the same time. Financial stress does not create failures: it exposes them. In those moments, protocols show their true nature. Some adapt, others collapse quietly, and many discover they were designed for an environment that only exists under ideal conditions.
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