The stars of the DeFi world gathered at an online conference, and almost all of them expressed concern about the industry’s rapid growth.
Star names of the DeFi world spoke at the Smart Contract Summit held online under the leadership of Chainlink on 28-29 August.
There were many names at the summit, from Sergei Nazarov, founder of Chainlink, to Andre Cronje, founder of Yearn.Finance, Stani Kulechov, founder of Aaeve, Kain Warnick, founder of Synthetix, and Brandon Iles, co-founder of Ampleforth.
According to Andre Cronje, creator of Yearn.Finance, the current boom in the world of decentralized finance (DeFi) driven by greed is not sustainable.
“I think the reason there is such a huge flow of money right now is because people are making crazy amounts of money.” Cronje says the explosion was caused by people capturing and selling management tokens. As is known, management tokens refer to entities created to allow people to make decisions on DeFi protocols.
“This is not a sustainable part of DeFi.” Cronje claimed that valuable protocols in the DeFi space, such as Synthetix, Compound and Chainlink, will survive when the greed phase is over.
“They are becoming the banks they are trying to avoid”
On the other hand, Stani Kulechov, co-founder and CEO of Aave, thinks as pessimistic as Cronje. “I’m afraid they are starting to think about how to accumulate all the wealth as DeFi protocols grow so much. They are actually becoming the banks they try to avoid. ” says. However, Kulechov added that he liked the way people used Aave, a protocol that recognizes interest and borrowing from the money they deposit. According to him, the best way to avoid the problem of DeFi protocols getting too large is that the different protocols work together smoothly.
According to DeFi Pulse data, the value locked in decentralized finance (DeFi) protocols reached $ 7 billion 860 million. The largest share is in Aave with about 22 percent.