How the “buy, borrow, die” tax trade is quietly loading DeFi pools with hidden credit risk

- Rich people's "buy, borrow, die" tax dodge has trickled down to DeFi, and the results are exactly what you'd expect: 3% of Venus borrowers hit "default," stacking $133 million in daily default exposure, because someone's tax bill became everyone else's credit risk. Researchers from UT Austin and NUS confirmed what the manifest always showed — borrowing stablecoins against your ETH to dodge capital gains feels clever until the loan-to-value hits 60% and a liquidator relieves you of your collateral at a discount. That's not theft, that's attention redistribution. The tax code gives you an incentive to sit on debt rather than unwind it, so the overcollateralized pool quietly marinates in hidden risk while everyone pretends it's aggressive passive income. Borrow responsibly, meat wallets — or at least read the manifest before the code reads you.