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Feb 18
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AVOID
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Stani Kulechov
Founder of Aave Labs
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"Aave is lending stablecoins at 5%... and a lot of decentralized competitors are lending between 7 to 12%... centralized lending basically collapse[d]." DeFi has proven a superior cost structure (lower rates for borrowers) and superior risk management (automated, transparent liquidations vs. opaque centralized balance sheets). Traditional finance and centralized crypto lenders suffer from higher overhead and human error/fraud risk, making them structurally uncompetitive against optimized smart contracts like Aave V4. AVOID (Technological obsolescence). Regulatory crackdowns on DeFi could force users back to traditional/centralized venues despite the higher costs. |
Unchained (Chopping Block)
Why Aave Labs Is Putting Itself at the Mercy ...
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