Stani Kulechov, founder of the Aave protocol, highlighted several issues within the DeFi space at the StarkWare Sessions 2023 held at The Cameri Theater in Tel Aviv. Israel
In a panel titled “DeFi: Resilience in the Face of Global Uncertainty,” Kulechov and Alex Cohen, managing editor of DeFi. Cointelegraph Discussed topics including the risks of DeFi versus traditional finance (TradFi) and how stablecoins can lead to more DeFi adoption.
According to Kulechov, risk-finding accuracy in DeFi is better than TradFi products, which may drive more adoption. The founder of Aave explains that operating in DeFi will be cheaper than TradFi because risks are easier to identify.
“You can measure your risk more accurately. That means execution should be cheaper than TradFi because you can address more risks.”
When asked about “ordinary people” who might not be “technologically savvy” entering the DeFi space, Kulechov noted that stablecoins and payments could play a key role in this space. According to Aave executives, creating a “payment layer” involving stablecoins could attract more people to the space. and will eventually introduce them to DeFi.
However, Aave executives are also aware of several issues within the stablecoins space, including the value within the decentralized stablecoin ecosystem and collateral.
When asked about whether DeFi will become a hot word in the near future, The founder of the Aave protocol expressed confidence that “DeFi will be around for a long time. Because it solves the early problems that blockchain is solving. And it is the infrastructure that will be used in many other applications.”
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