TradFi Sees Blockchain as the Future, but DeFi Loan Underwriting as a Joke

Summary

Paul Frambot discusses institutional reactions to the Kelp DAO hack, noting that institutions believe in blockchain's future but view DeFi underwriting as flawed. He explains that some institutions see on-chain asset management via Morpho as an opportunity, while conservative players face 3-6 month delays. The clip contains no explicit trading ideas.

• Kelp DAO hack caused a $230M shortfall on Aave.
• Paul Frambot personally called institutional partners to assess their reaction.
• Institutions are convinced blockchain technology is the future but criticize current DeFi underwriting.
• Fintechs moving on-chain creates a business opportunity for institutions to manage Morpho vaults.
• Conservative institutions are delaying on-chain adoption by 3-6 months, some even years.
• Morpho's isolated design is viewed favorably by sophisticated institutions.
• No direct investment advice or tradeable expressions are offered in this clip.