Stani Kulechov, co-founder of Aave, acknowledged that DeFi only benefits people who already have money. Stani Kulechov, founder of DeFi loan protocol Aave, thinks the distribution model of DeFi platforms is unfair. Those who own the capital buy tokens for little additional effort and then sell them to those who do not have access to that capital. However, Kulechov states that the technology is quite robust.
Buterin Liked Central Bank Policies
Yesterday, Vitalik Buterin, co-founder of Ethereum, mockingly compared DeFi projects to central banks. According to him, cryptocurrencies are constantly minted as yield farming to pay those who provide liquidity. This is similar to the policies of central banks.
“This looks like a pyramid scheme,” says Matthew Aaron of Decrypt with Stani Kulechov, co-founder of Aave. Is this the correct term to use here? ” used the expressions. Kulechov replied, “I think the right term is an economy where big people basically get things for free.”
Kulechov’s protocol, like many other projects these days, pays governance tokens as a reward to people who invest a lot of money into smart contracts.
Aave’s LEND token (such as COMP, YFI, CRV, and even SUSHI) is designed as a management token that transfers power to people using the protocol. But in practice, LEND and other DeFi protocols have become new stores of value for them and come out to investors as profitable pools.
This is exactly what prompted Buterin to tweet yesterday:
“Continuous printing of cryptocurrency to pay liquidity providers makes it look like the policies of major national central banks.”