Aave Founder: Immutable Oracles and Interest Rate Mechanisms Pose Potential Disasters for Lending Protocols, Asset Managers' Conflicts of Interest Heighten Industry Risks
TechFlame
2025-11-06 00:12
TechFlame2025-11-06 00:12
English
TechFlame reported that Schlag, a member of the Yearn community, posted on platform X stating that the losses from Stream were due to high-leverage trading, directional trading, and concealing the use of user funds. Therefore, DeFi projects need to be standardized and transparent. Rigorous due diligence should be conducted, and treasury (Vault) operations should not solely focus on returns but also prioritize risk control. Leverage is a double-edged sword—it amplifies gains but also magnifies risks. Users should pay attention to where their funds are going and choose projects with transparency.
In response to this comment, Aave founder Stani.eth posted, "There is a lot to unpack here, especially regarding the issues associated with immutable oracle price feeds, interest rate curves, and their parameters—this point is spot on. For lending protocols, this combination of design is undoubtedly a 'bad setup,' and I hope the relevant parties come to their senses before it's too late.
Additionally, the post highlights the conflict of interest among asset managers—they take excessive risks to stay competitive.
Building a secure decentralized finance (DeFi) ecosystem is already extremely challenging, and currently, not only do ordinary investors lack sufficient due diligence, but the same issue exists at the integration level.
Let’s work together to create a better decentralized finance (DeFi) ecosystem."