DeFis next institutional wave may come from users who never see “behind the scenes” – CEO of Katana
For years, DeFis growth strategy was to pull users on-chain, and the next institutional wave is testing where users may never know theyre touching DeFi at all. Matt Fisher, CEO of Katana, shared with CryptoSlate how the front end owns the user. If a credit card, a fintech app, or an exchange routes deposits into Morpho or another lending protocol, the customer remembers the card. The credibility problem underneath the optimism Fortune reported that Morpho closed a $175 million raise on June 9, backed by Paradigm, a16z crypto, Ribbit Capital, VanEck, Apollo Global Management, and Circle Ventures, among others spanning crypto-native funds and traditional finance. Fisher said: “On-chain, DeFi is facing its biggest threat. The latest run of hacks and exploits has been a huge tax on the credibility and confidence.” He was referring to the Drift and KelpDAO exploits, which TRM Labs linked to North Korean state actors and which together accounted for roughly 76% of 2026s hack losses through April. The KelpDAO hit was estimated at around $290 million, built on unbacked rsETH used as collateral across Aave, Compound, and Euler. The episode resulted in $200 million in bad debt on Aave, which demanded a joint effort from protocols and retail users to cover. Composability, which