Life is simple
Go the the gym, get yourself in shape
Find a partner that you love being around, marry them
Do something you believe in, making a living off it by helping others
Show up, put in the work, run your own race
And remember, whoever has the most fun wins.
A vault is comparable to an onchain fund, and just like traditional funds, some will perform well and others won't, but this is what we must accept and mitigate if we want to build a truly open and decentralized system.
The fact that only 1 out of ~320 vaults on the Morpho App had limited exposure to xUSD isn't evidence that the model doesn't work — quite the opposite. Morpho's isolated market + vault model meant all 319+ other vaults and their depositors, each with different risk profiles, had zero exposure.
Many assume losses equal system failure. However, in open financial systems, losses are a natural consequence of risk-taking, even when systems operate exactly as designed. As an industry, we should not fall for the fallacy that yield is risk-free. Instead, we should focus on better surfacing and educating about risks — ourselves included.
For DeFi to be the backend of finance and scale to trillions in lending volume, lending infrastructure must remain separate from risk management. We firmly believe that this open and permissionless approach is the right one, and how DeFi was intended to work.
I’m right curving this
I’ve gone so deep into too many rabbit holes, to a point where it’s impossible to deny God’s existence
God is real and God loves you
1/ Chaos Price Oracles is the primary oracle provider for @ArchNtwrk.
The first integration: @AutaraFinance, a Bitcoin-native money market built on Arch.