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Founder of Aave: Immutable oracles and interest rate mechanisms pose a potential disaster to lending agreements, and asset managers' conflicts of interest exacerbate industry risks

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2025-11-06 00:13:10
Yearn community member Schlag posted on the X platform that the reason for Stream's loss is high leverage trading, directional trading, and concealing the use of user funds. Therefore, the DeFi project needs to be standardized and transparent. Due diligence should be strict. Vault operations should not only pursue profits, but also pay attention to risk control. Leverage is a double-edged sword. The income amplifies and the risk is also amplified. Users need to pay attention to the whereabouts of funds and choose projects with transparency.
In response to this comment, Stani.eth, founder of Aave, wrote that "there is a lot worth dissecting here, especially with regard to the price feed of the immutable oracle, the interest rate curve and the parameters that accompany it. This (design) combination is undoubtedly a" bad solution "for lending agreements. I hope the relevant parties will wake up in time before it is too late.
Moreover, it points to conflicts of interest among asset managers, who take excessive risks to compete.
Building a secure decentralized financial (DeFi) system is inherently challenging, and the current lack of adequate due diligence not only among ordinary investors, but also at the level of integration.
Let's work together to build a more complete decentralized finance (DeFi) ecosystem. "
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