Bankless The Return of Aave | Stani Kulechov
Mar 30, 2022
Stani Kulechov, Founder and CEO of Aave and Lens Protocol, dives into the groundbreaking features of Aave V3 and its impact on decentralized finance. He discusses innovative concepts like self-repaying loans and the importance of cross-chain functionality. Stani also explores the future of social media ownership with Lens Protocol, emphasizing user control and dynamic NFTs. The conversation highlights how these advancements are reshaping both the DeFi landscape and the Web3 social space, paving the way for a more decentralized future.
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Aave's Growth and Risk Management
- Aave Protocol's growth from managing $20-30 million to $14 billion necessitates a shift in risk management.
- Capital efficiency is crucial for Aave v3, given the layered nature of DeFi protocols and growing user adoption.
Aave V3 Portals
- Aave V3 introduces Portals, enabling cross-chain asset transfers without physically moving assets.
- Portals facilitate minting and burning of ATokens across different chains, improving capital efficiency.
E-Mode in Aave V3
- Aave V3’s “high efficiency mode” (e-mode) lets users borrow assets with high collateralization ratios.
- This enables efficient leveraged trading and on-chain arbitrage opportunities.