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29 - Aave to Billions | Stani Kulechov

Bankless

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Decentralized Decision-making and Risk Strategies

This chapter explores the intricacies of decision-making in decentralized protocols, focusing on risk parameters, collateral types, and governance safety mechanisms. The conversation highlights the Aave protocol's innovative backstop module and its approach to user risk engagement while discussing the importance of community input and the influence of established models like Maker. Additionally, it addresses upcoming improvements in Aave V2 that aim to enhance user experience, lower gas fees, and promote collaboration in the DeFi ecosystem.

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