Cryptocurrencies vs. traditional finance | Source: BIS 

The report criticized the high leverage sourced from DeFi trading and lending platforms, such as Binance's margin surpassing 100x at one point in time. It also outlined that the fragility of stablecoins, characterized b their opaqueness and lack of regulation, coupled with liquidity issues and market risk, can lead to an investor's bank-run that causes them to drop far below par value in a short period.

Cryptocurrencies vs. traditional finance | Source: BIS 

The report criticized the high leverage sourced from DeFi trading and lending platforms, such as Binance's margin surpassing 100x at one point in time. It also outlined that the fragility of stablecoins, characterized b their opaqueness and lack of regulation, coupled with liquidity issues and market risk, can lead to an investor's bank-run that causes them to drop far below par value in a short period.