“They are practically money printing machines. I believe this madness will end at some point.”
Aave CEO Stani Kulechov is concerned about the lack of innovation within the decentralized finance sector (DeFi), citing the “copy and paste” nature that dominates the sector today, also causing a problem of lack of decentralization and democratization of the system.
In addition, for Kulechov, the “Yield Farming” wave (making money by “lending” coins to a pool on a DeFi platform) is also coming to an end.
Aave’s CEO wants to bring different changes to the sector which, to him, seems to be at a standstill and with different problems that need to be solved. Aave is one of the main platforms in the DeFi sector.
De acordo com as preocupações de Stani, o atual sistema não tem um bom equilíbrio e muitas vezes favorece apenas as grandes baleias, deixando os usuários comuns de fora. Esse é um problema ainda mais comum com as taxas exageradas do Ethereum.
De acordo com o CEO, o problema está nos modelos de distribuição no Yield farming que acabam favorecendo as contas com grandes quantidades de moedas. A solução para o problema deveria ser um sistema mais democrático de incentivos que saia da mesmice que vem dominando a indústria.
“Isso pode ser solucionado ao simplesmente criar incentivos mais democráticos ao invés de só copiar e colocar o mesmo modelo várias e várias vezes.” Disse Kulechov ao Crypto Briefing.
Além disso, ele acredita também que a descentralização é fundamental para o setor, afinal, é algo que está no próprio nome Finanças Descentralizadas.
“I personally believe that the protocol is decentralized when the founding team’s proposals can be voted against and the team, including its initial investors, does not own more than 50% of the tokens.”
Yield Farming madness will lose strength
One of DeFi’s main highlights so far was precisely the possibility of profiting from Yield Farming, which earns “interest” by lending currencies to the liquidity pool of a decentralized exchange.
While many find this an interesting way to reward investors who keep a platform up and running, the current model has already attracted different critics who believe the system is unsustainable.
Kulechov is among those who are concerned with how things are working now, comparing protocols that are copied over and over with money printing machines.
“They are practically money printing machines. I believe that this madness will end at some point and we will see more sustainable incentives. ”
Recently, the DeFi market has been losing some strength, despite the great appreciation of some currencies in the sector. The CEO of Aave concluded that, this decrease comes precisely from the lack of innovation and with projects always looking for new ways to attract other investors with the promises of Yield Farming.
The madness of DeFi is so great that recently it has been compared to what happened with the cryptomercado during 2017.