The lack of good innovation is gradually destroying the decentralized finance (DeFi) as stated by the CEO of Aave, the leading lending platform of the industry.
Tani Kulechov is the CEO of Aavegotchi. He has recently informed, that there are some big issues with the innovative nature and functioning of the DEFi space at the present moment. He further stated that the general fundamentals have still managed to retain their stronghold over the industry in general.
Aave CEO Explains DeFi
The economy of decentralized finance might be a little imbalanced as of now and frequently support the wealthy whales instead of the average users. It is especially true and evident when the high gas and transaction fees of Ethereum closed down the retail investors.
Stani Kulechov, CEO and founder of Aave had a conversation with Crypto Briefing regarding the problems over DeFi and the probable issues.
Even though the distribution models have been favoring the bigger accounts there is a possible solution to this problem. The solution is that there must be more equitable incentives rather than copying similar models that are old once again.
The answer to this issue is definitely decentralization. Kulechov has already suggested that the decentralized aspect in DeFi might be the reason for creating these troubles for the industry as a whole. As a result, he has advised a method by which the projects can be evaluated in this sector.
He has also pointed out yield farming is no longer an attractive incentive but several of the yields are not sustainable. Moreover, the yield farming method has resulted in the death of innovative ideas.
Pods Finance is a new project that reduces the price of options for using Aave tokens.