DeFi, lending and high APYs, all will be liquidated and bankrupted in bear market. Especially if their portfolios have crytocurrencies that have x100, x200 in 2020 and 2021 bull run and they have yet cashed it out to good stable coins.
Things for them will be worse if they used too high leverage in bull run and did not cut their positions to safer leverage.
Unfortunately those lending places do not realize the default rate because they are taking all the money upfront as a collateral, hence why they are not really lending. It's exchanging with extra steps and nothing more.
If I give you 120 dollars worth of LTC today, and get 100 dollars worth of BTC, then we just made an exchange, sure I could pay you back the 100 dollar worth of btc back, and then get the 120 dollar worth of ltc in my account again, but that's literally trading and nothing more, useless. This is why I doubt that all those "defaults" matter to them, they won't crash down to nothing, why? Because they already took so much upfront.
