0xillich

[0xillich @0xillich]

This is insanely disingenuous from someone supposedly focused on risk. If you look at actual facts and data and not manufactured FUD (you do realize you guys are harming yourselves through this relentless, coordinated insanity?), it’s clear that at least >95% of the liquidity supplied into bluechip market like cbBTC comes from vaults with zero exposure to risky markets. So even when massive credit events happen (10/10, xUSD, etc), all of the bluechip markets are completely safe. 455m of the 505m total supply in the cbbtc usdc market https://t.co/XEfBiT327S comes from curators who only have cbBTC, wstETH, and wBTC listed as collateral in their vaults.

There is no liquidity or redemption risk, because the market has rewarded the highest trust curators with the most deposits, and they OVERWHELMINGLY represent the liquidity in the blue chip markets. Believe it or not, this is how free markets work. Not paternalistic ones like the vision you lay out for Aave and Chaos. Smart money is increasingly choosing Morpho or Spark because the safest vaults are an order of magnitude safer than Aave and it's 30+ collateral.

And again, we don’t need to pontificate about this. It just happened. I encourage everyone to look for themselves. And to read this post hhttps://x.com/SebVentures/status/1987209457483288592

It's ok though, the market is finally seeing through Aave’s bullying. Aave pretends to be the protector of DeFi ideals, but in reality wants to become a global, internet native centralized bank that sets risk parameters for the entire market, deciding who gets liquidity and at what premium. (And this will not change with V4, they'll never give up that power.) It is of course anti-ethical to the entire movement (actually it's worse than the current financial system). Thankfully, despite your and Aave's marketing teams best efforts, the truth is finally winning.

DeFi will win, and the risk parameters for that global market will not be set by a start up, an anon team that used to manage risk for Curve (@LlamaRisk), and a bully (Marc Zeller). I get that @aave is the ultimate vendor lock in for @chaoslabs , but think for a second… do you really think the Blackrock, Apollo, Fidelity, Vanguard, State Street's of the world will not want to manage their own vaults when they come onchain? And use their own isolated markets that fit their own unique strategies and partnerships?

You think they’ll just give all of their customer deposits to be managed by Chaos Labs, Llama Risk and Marc Zeller, in one massive pool? That they'll want every asset listed to go through governance & the "DAO"?

Of course they won’t, and you know it deep down in your heart. There's a reason Aave wont debate Morpho on the merits of the two systems (https://t.co/6PCgPtnq8c 🦗🦗)

Enjoy the throne will you have it.

[Mippo 🟪 @MikeIppolito_]

I'd like to invite @PaulFrambot and @StaniKulechov onto Bell Curve to discuss the isolated risk model in lending.

Some very good points from both sides made this week, retweet if you'd like to see these two legends on a pod 🫡