Buzz around DeFi: The Founder of Aave Protocol Expressed Confidence

• The Aave founder shared his thoughts on stablecoins and DeFi.
•  Visa shared new thoughts on developing stablecoin settlements on its platform.
• The total volume of DeFi is $5.74 billion, 11.20% of the total crypto market.

At the StarkWare Sessions 2023, the founder and CEO of Aave and ETHLend, Stani Kulechov, pointed to the major issues within the DeFi space. Kulechov also pointed out that one of the major challenges in the crypto ecosystem is “less backing in decentralized stablecoins compared with centralized.”

As per blockchain data platform, Chainalysis, cyber attackers stole 1.3 billion USD from cryptocurrencies, 97% of which were stolen from DeFi platforms between January and February 2022. The Aave founder also highlighted that the stablecoins, “most resilient ones,” are overcollateralized.

He said, “You have all this visibility, you can actually quantify the risk more precisely which should mean that then you are operating in an environment where it should be cheaper for you because the risks are more known.”

Earlier, Anton Bukov, the co-founder of the 1-inch network, highlighted the importance of DeFi platforms. Bukov stated, “the key to DeFi adoption among institutional investors is a deep understanding of transparency benefits, trustless approach and self-custodian technologies.”

The co-founder of Primex Finance, Dmitry Tolok, also commented on DeFi security. Dmitry said, “more insurance protocols are also needed to mitigate concerns related to potential hacks. The growth of such protocols would lead to the organic development and growth of DeFi.”

DeFi

The total volume in DeFi is $5.74 billion, 11.20% of the total crypto market, and the volume of all stablecoins is $46.09 billion, according to CoinMarketCap. Avalanche experienced the highest growth rate since August 2022; AVAX surged by 14% at the end of Jan . At press time, AVAX is trading at $20.20, up by 0.45% in the past 24 hours. Aave was up by 0.82% in the past 24 hours, trading at $86.79.

Visa: Stablecoin settlement

The world’s largest payment processor, Visa, shared new thoughts on developing stablecoin settlements on its platform. According to the presentation at Starkware Sessions 2023, Visa is planning to provide access to users to convert crypto assets to fiat currencies on its platform.

As per a report from San Francisco Business Times, he said, “It’s very early days, but we continue to believe that stablecoins and CBDC have the potential to play a meaningful role in the payments space, and we have a number of initiatives underway.” And the concern is the impact of CBDC on economies and whether they could replace fiat currency.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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