Aave co-founder Stani Kulechov, in a podcast with Decrypt’s Matthew Aaron on September 2, offered a sharp response to the profit-seeking in the DeFi space, criticizing it as a system that currently rewards the rich.
- When asked if yield farming resembled a ponzi scheme, Kulechov said that a correct way to describe it would be “people basically get things for free”
- He said the system favours those who have a lot if capital to begin with, while those who do not are “basically smaller people paying bigger people”
- Ethereum (ETH) co-founder Vitalik Buterin has also criticized high yield DeFi protocols, saying that the amount of tokens minted “makes central banks look like they are run by Ron Paul”
- Aave, of which Kulechov is also CEO, is one of the DeFi protocols with the most value locked in, at $1.53 billion
- Kulcheov also touted Aave’s collaboration with real tokenization project RealT, which will make good on Aave’s bid to tokenize mortgages