this is bad thing for all depositors who are losing money. but good for overall progress of crypto. centralized custodians should be regulated, and users should be educated about the benefits of choosing self custody and decentralized exchanges over unregulated and opaque services.
contagion will spread more after this, so expect more centralized services to fall.
yes there are dozens of decentralized protocols that claim to offer high yield. but few can really sustain that in reality. safer to not chase such high yield.
My understanding of the "high yield" options don't pay out in stable coins. At best, they are vulnerable to impermanent loss and worse the smart contracts get outsmarted with all the coins gone. Staking crypto has lockin periods, whereas blockfi had no lockin period.
Can you share an example of a decentralized protocol that offers high yield in a stable coin with less risk than blockfi offered?
contagion will spread more after this, so expect more centralized services to fall.
disclaimer: i am former BlockFi depositor.