AAVE

anonymouscitizen2

Defi may seem difficult but it isn’t. It is the same process but far simpler to take a loan from AAVE. People who already own crypto use NEXO, neither service is for people with zero crypto exposure. Do I think NEXO gives out no loans? No. Do I think they offer rates way higher than they could pay with loan originations, yes. They admitted they trade with customer funds and keep them on other exchanges in their “explanation thread” that is the only way they could be paying 10% to everyone but that adds substantial risk. I don’t believe they’ve perfecty avoided ftx, 3ac, luna, UST, celsius, Voyager etc. every other crypto lender, even institutional was severely impacted by these collapses. Then tack on their magic trading ability that earns 10%+ on stablecoins, I don’t think so. Red flags all around in my opinion and I would not use the service.

anonymouscitizen2

AAVE is far easier and way faster than any centralized lender. If you’ve ever used it you’d know. Takes less than 5 minutes to get in and get out with your loan. Submitting your KYC documents and showing taking a video of your asshole in order to withdraw is far more difficult, time consuming and expensive. 2.4% APR vs 14% for NEXO

anonymouscitizen2

Your KYC for an exchange does not work for NEXO, you have to KYC again for NEXO. Not for AAVE. If you are somebody who owns no crypto you shouldn’t take a loan from NEXO or AAVE. Go to a bank. The only people who are taking loans from NEXO are people who already have crypto. If you already have crypto you can take a loan from AAVE in far less time. You go to AAVE markets webpage, connect your wallet Click deposit on your desired collateral type(ETH) enter the amount you want to deposit, confirm the token approval( no token approval needed for ETH). This will cost ~1-2$(for erc 20s). Once the transaction goes through you hit deposit again and this will cost 3-4$. Finally you go to USDC hit borrow and enter the amount you’d like to borrow, in this case 1,000$ pay the transaction fee 2-3$ and once it confirms you are done, 1,000$ USDC in your wallet. Less than 5 minutes. This will take far less time than even getting your KYC completed at NEXO and will cost far less in aggregate at 2.5% APR plus 5-9$ in tx fees . I didn’t pave over gas fees, they are extremely small, less than 9$, even for a new user. Only counter-party is a transparent smart contract, not a shady company. There you go, just saved you a ton of money and from the eventual bankruptcy of NEXO.

marsh2907

I never said that Nexo doesn't require crypto collateral. You have to KYC in most instances through CEX to even be able to on ramp before you can even consider using DEX's like Aave. So, it's irrelevant to even bring up the KYC that Nexo requires. Everything you interact with Aave for the first time requires approval. Aka transactions fees. Don't try paving over the GAS fees that are required to interact with AAVE. Now, those gas fees can be extremely cheap, but that is dependent on how busy the entire network is at the time and what network you use to interact with aave. Most of it will be through ETH network to begin with. If you want, then tell me from start to finish for a first-time user how I would go about borrowing 1000 USDC using ETH as collateral on the ETH network. And that mentioning every transaction fee that's needed to be paid. Remember, I know how the Aave network works, so don't try missing anything out. Prove Nexo is a ponzi without just saying it. Otherwise, that is just like crying wolf.

anonymouscitizen2

The fact you are totally disregarding the fact that NEXO requires crypto collateral to borrow is hilarious. If you’ve got the crypto to take a loan on NEXO you’ve got it for AAVE. Its a ~5$ transaction fee right now. You can’t convince me it’s hard or expensive, I took one out last month. KYCing and getting a loan approved and withdrawn from a centralized service is far more time consuming and objectively costs more 2.5% < 14% plus you get the counter-party risk. You don’t even know how AAVE works, theres no fee to “approve the loan or confirm the loan” that doesn’t even make sense. You approve your collateral, deposit it and borrow. It takes a minute and costs 5-10$. KYCing, depositing and borrowing on NEXO would take > 1 day and cost you just as much plus 12% more interest lmao. It’s a shit deal which is why people are finding it hard to believe so many people are taking it over the alternatives. They are trading with peoples money or running a ponzi scheme with those interest rates. Even other centralized lenders offer loans with less interest and pay less on deposits.

marsh2907

Supply and demand mean nothing if there is a gate blocking most people from even accessing the cheaper loan. That requires 20 plus more steps, a good knowledge, and understanding before being able to pass through. You have to post collateral on AAVE, too. Also, there are like 4 different fees you have to pay even before you get your loan off aave. First fee to allow a certain asset to be used as collateral. 2nd fee to deposit that asset as collateral. 3rd fee to approve the loan and a 4th to confirm the loan. After that, you receive the loan of which, if you aren't going to use it on aave, then you'll need to transfer from your wallet to where ever, which again is another fee. Now, depending on which network you use affects how expensive the fees are. But most people won't know that and will most likely use the main network (ETH), which is the most expensive. Also, network fees don't scale with size, so you'll pay the same fee whether you're borrowing £100 or £100,000. So the small borrows pay a much higher percentage fee to loan amount. You don't know how many people borrow off Nexo. So don't pretend like you do and can say with 100% certainty. Most banks won't allow you to use crypto as collateral, so it doesn't matter if they can offer you 7-8%. People use platforms like Nexo, and they don't want to sell their assets for tax benefits. Not classed as a disposal if you borrow against your crypto assets. So, there is no tax to pay. And platforms like Nexo are 10 times easier to access and don't require really any knowledge to use. Compared to DEX's regardless if DEX fees are way cheaper. Genesis and other platform blew up because they were using funds they didn't have or got hit by all the black swam events earlier this year. Whether that be the 3 arrows capital and luna/UST event. Or, more recently, FTX. But you'll believe what you want as clearly you can't be bothered to look into how Nexo operates differently compared to Voyager/Celsius.

anonymouscitizen2

It’s simple supply and demand. If people can buy oranges for 1$ they are not going to buy them from a guys selling them for 3$ (in aggregate) A loan from AAVE costs a couple dollars, it isn’t expensive as hell. Its expensive as hell to pay 14% to borrow stables you can borrow anywhere else at 2.5%. To get a loan from NEXO you have to post crypto collateral too? If you don’t even have crypto collateral you go to a bank and get a loan at 7-9%. Everyone already has an exchange account for crypto, very few have centralized lending accounts, AAVE doesn’t need one. The entire point is very few people would borrow from NEXO at 14% when they can do it literally anywhere else at 2.5% or a bank for 7-9%. They cannot be generating enough loan originations to pay 10% on every bodies deposited stablecoins unless they are offering undercollteralized loans to big players or trading with customer funds. Theres no other logical reason to take that deal. I’m not going in circles about this anymore. If you like NEXO and want to keep your assets there go ahead. I’m pointing out multiple red flags in my opinion that NEXO has that every other lender had and they went under. Somehow by some magic NEXO has avoided blowing up and can keep paying 10% yields while literally all of the other crypto lenders, even institutional (genesis) have blown up the past 6 months. It stretches credulity but go ahead, keep earning away man. Those pennies won’t pick themselves up in front of that steamroller.

anonymouscitizen2

Yes, thats the same thing celsius and voyager said. Turns out it was a lie. I said “logically” and I stand by it. Nobody with any capital is borrowing from NEXO at 14% when they can borrow anywhere else for far cheaper. Iv tried platforms like this and dapps like AAVE. The dapps were far faster and easier for borrowing than any centralized service. I had the loan in less than a minute where as I had to wait days for KYC/withdraws on centralized services. I know how these platforms work, that isn’t the problem. The problem is where are they getting the money to pay 10% yields from when nowhere else can come even close. Thats a major red flag and that thread does not answer the question.

cryotosensei

More information on Singapore’s situation: 3. In June 2022, MAS launched Project Guardian, which would involve the creation of a permissioned liquidity pool of tokenized bonds and deposits. It planned to harness the lessons gleaned from implementing Project Guardian to decide on rules and regulations governing crypto in Singapore. On November 2nd, JPMorgan went on board Project Guardian, executing its first ever cross border DeFi transaction through Polygon and a modified version of AAVE. This transaction involved the trading of Singapore dollar and Japanese yen.

StamInBlack

AAVE is supposed to be a DeFi lending platform. Trustless. This is going to be good.

coinfeeds-bot

tldr; decentralized lending protocol AAVE has temporarily disabled its lending markets for several Ethereum-based tokens facing excess volatility and low liquidity. Aave passed a near-unanimous governance vote to disable the markets, with only two votes against, and over 500,000 in favor. Earlier this month, Aave faced a $60 million short attack on its CRV pool using USDC as collateral. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

DMugre

That's true for all of crypto though. The good ones aren't and that's about it for what that argument is worth. You might be too young to remember when people said that about BTC, same goes for ETH, and now the same can be said about good DeFi products like AAVE, Curve, Uniswap, Quickswap, QI, Balancer, Indexcoop, MakerDAO etc. > Most DeFi usecases do not exist for the average users That's only true if your depiction of an average user is a first-world citizen with an already viable and stable economy. For those of us living in countries where our governments are corrupt, our currency is a worthless, inflationary piece of shit, and our taxes are criminally high to the point of deterring all and any forms of investing, **DeFi is the only viable financial system we have**. Think about it this way, in many countries around the world DeFi is still less volatile than our TradFi economies, and less of a scam than out governments.

DMugre

Good point, and while valid, to assume the opposite is true would be just as speculative. let's not forget AAVE launched with a price of $52, if we were to take the top 51% non-protocol-owned wallets (sadly it's impossible to see which token is owned by who on the staked Aave pool, and that's the biggest wallet) those 15 wallets hold around $173619599 worth of AAVE, that means if anyone wanted to whale and manipulate this protocol, in particular, they'd need to have a ginormous amount of money, to begin with.

Every_Hunt_160

If Aave gets successfully cracked its not good news for DeFi Pretty sure AAVE is one of the biggest, if not the biggest Defi lending platform ATM

believeinapathy

When is "the internet down?" Never experienced this. But being able to borrow $$$ on AAVE has made my life a lot easier.

stormingaround10

Probably it can. We can never know if there another crash will happen. Regardless, I will DCA in oracles LINK and DIA, but also focus on passive income through DAFI and AAVE.

pbjclimbing

TLDR: AAVE sees a potential weakness in the protocol and people are proposing fixes.

Psilodelic

Sure the protocol risks are real. But you’re telling me AAVE, Curve, Compound are as dangerous as LUNA ecosystem?

hiredgoon

The AAVE team has disqualified all resolution ideas to date.

flatpak2021_08_2021

i agree with you that it probably wouldn't pass, but has anyone even created a vote? anyone with a detailed proposal and 50 AAVE ($3000) can start a snapshot.org vote

Squezeplay

They didn't hold ONE. They lent out ONE, against collateral of bridged tokens. The risk of these tokens getting compromised should have been considered given the known security issues with the harmony bridge. These lenders already got compensated for this risk by the yield they got. Technically nothing unexpected happened, their investment just went the wrong way, like if you buy a stock option and it expires out of the money. You aren't due any compensation. Disabling borrows would not have saved the protocol, but would only maybe have left a little liquidity for a fraction of the lenders to get out first-come-first-serve. You could say if AAVE were faster they could have increased that fraction of people who could have gotten out. But then on the other hand the people who bought bridged tokens to deposit into AAVE were cashing out holders of bridged tokens so you're just intervening to save one person over another, neither of which really has any more right to compensation than the other.

hiredgoon

We've been stuck in this bureaucracy for six months. Any vote will fail as everyone knows AAVE whales will never vote to slash their own profits.

hiredgoon

The formal process is destined to be voted down by AAVE whales who will only vote to make themselves whole.

hiredgoon

This is the sign everyone should know that AAVE will never make you whole. The safety module is for whales like AAVE team and friends and they will only vote to slash user funds to make themselves whole.

FreddieChopin

But you do realize, that the people who actually have a problem because of AAVE are the ones which lent-out ONE, even if they did nothing else? They are the ones who cannot withdraw now (because the utilization of the pool is 100%) and most likely will never be able to withdraw unless AAVE does something (all the borrows of ONE will most likely never be paid back, as this was the last viable way to get out of bridged assets with minimal loss). So technically this issue affects the people who "held" ONE only (on AAVE instead of their wallets). If real depegged prices would be used, then the depegged collateral would most likely get liquidated and people which provided ONE would be 100% fine. But obviously the argument about low liquidity and ease of manipulation of such small market is valid, so there probably was no good solution. However AAVE could have at least disable all borrows ASAP after the hack, which is a typical thing other lending pools do in times of distress.

hiredgoon

The people who lost money via AAVE weren't lending bridged coins. AAVE took valueless coins as collateral and still misprices those coins on the live site today.

hiredgoon

AAVE mispriced assets and loaned good assets for bad collateral. For six months the affected AAVE users have been sent through a byzantine process designed to drown them in bureaucracy and ultimately be voted down by AAVE whales (e.g., the team).

flatpak2021_08_2021

that comment was only 12 hours ago, hardly 'stuck' and while creating the final on chain vote requires a lot of AAVE (as it should), creating a snapshot vote does not. come up with a detailed plan and hold a temperature check on snapshot

hiredgoon

The AAVE team knows that process will end in nothing by design.

hiredgoon

The AAVE team knows it will disqualified or vote down any ARC thread so that is just political theater.

hiredgoon

Is AAVE at fault for the bridge hack? No. Is AAVE responsible for how it prices assets? Yes. Is AAVE on Harmony still mispricing assets six months after the hack? Yes.

sickvisionz

> BTW, to cover this loss to their users would cost AAVE 48 hours of profit. That's it to make everyone whole. This would have to be voted on by the community. They probably will down vote it but someone should make a governance thread about it. Maybe it will pass.

thejuicesdidthis

I can't remember if it's AAVE or another defi, but the majority community votes against helping those affected by the harmony exploit because it has to be done at the cost of those who weren't affected by the exploit. There's a post about it here a few weeks ago.

FreddieChopin

I'm not saying they must refund or bail users, just that there is some error on their side too. Also many (all?) lending projects on Harmony disabled borrows right after the hack (to prevent bad debt from increasing), yet AAVE still has them open...

Dormage

I think I understand where the issue comes from. But the argument here is we all knew this was the way the protocol operates, it did not suddenly change nor did it operate differently in face of a threat. The way AAVE prices tokens was coded like this fron the start. Many, including me may not have seen this is a major risk but now do. Still it is not up to the developers or project to refund users because a bridge went down ?

FreddieChopin

>Aave, the protocol is quite secure and even with ONE bridge meltdown, it operated as expected. Well, this part is not entirely true. The main issue is that AAVE has used oracle prices for non-bridged assets for bridged assets, so they take the price of ERC-20 USDT and WBTC and consider that to be the value of Harmony-bridged things like 1USDT and 1WBTC. The market value of Harmony-bridged assets dropped 70-90% right after the hack, but AAVE up to this day still considers them pegged 1:1 to their non-bridged tokens. This was quickly exploited by people looking to cover their losses and looking for an exit, where they would provide their (almost worthless) bridged tokens and borrow (not-so-worthless) ONE. You could say this is technically harder to have real market prices from oracles for bridged assets, but nevertheless, this is the real issue here and the item where AAVE has in fact failed. This is not much different from hard-coding value of a stablecoin to be 1$ (Scream@Fantom?), because this was neither the first, nor the last bridge hack which resulted in a loss of peg.

Sugarbird676

Can you explain what happened? I don’t really pay attention to AAVE, but have generally thought of it as a solid project. What’s this recent drama?

Tiltnes

Wrong. AAVE worked like it should. Harnony bridge got hacked. AAVE not at fault, and not responsible to compensate for hacks on all the chains it has deployed on.

anonymouscitizen2

Why do you think AAVE should pay back users? They weren’t responsible for the hack. Lending/earning yield in any fashion carries some risk.

JoshuaB123

So does this mean MKR and COMP are better projects than AAVE?

naulxd

Managin a giant defi protocol on times of regulations uncertainty must be very difficult. I am not infested on AAVE. The best way of understanding their actions is to engage on their forum and discord.

hiredgoon

My point exactly. Why is AAVE diminishing its brand and trust in its team for two days worth of protocol profit?

hiredgoon

R5: People may be inclined to dismiss this, but AAVE had a catastrophic risk management failure for during the Harmony One bridge hack, but worse it continued for *weeks* without warning its users. The assets in question aren't the unpegged assets but rather full value assets like ONE itself that was loaned out for bad collateral that will never be repaid. AAVE has been seen by many as bad actor having taken zero actions to make their users whole in anyway despite their claims of Security & Audits, Safety Modules, and Risk Parameters. The [Safety Module](https://docs.aave.com/aavenomics/safety-module) in speaks to what they call "shortfall events" but for some reason isn't considered applicable in this case. BTW, to cover this loss to their users would cost AAVE 48 hours of profit. That's it to make everyone whole. But they are choosing to bury this seemingly because they can.

PotadoLoveGun

Those are all good points. I understand nothing is safe. I think it has potential but you are right alts are very volatile. I like the idea of AAVE/COMP for alts I'm not gonna put 100% of my money into anything risky, not in YOLOing. I am dipping my toes and putting small sums in different alt projects. I have ADA, COMP, and a couple others. Some large, some small. Its money I can lose so I'm not worried about it. I'm not shilling it or asking you to invest in it. 90% of the money I have in Crypto is in ETH and BTC. To me, its like investing in a small/micro cap stocks. In stocks, I can look at financial reports and metrics which I understand. I like Fringe Finance BUT I guess my question is more broad over all alt coins/platforms. How do I separate something not legit from a genuine project? Especially smaller ones, not dog related coins/tokens.

heyheoy

LEND is the word!! All the failed projects have been lending with rations 20% 10% even 5% for BTC its a LOT!!! For something transparent we have AAVE that lucky if its 1%

CrowdGoesWildWoooo

Not really, the lending part on FTX has always use dynamic interest rate for both margin borrowing and lending. The lending side gives 2600%, but if you borrow to short it would be at least as high. Dynamic interest rate is a thing, which also happens in defi. Earlier this week on AAVE GUSD had 20+% supply APY, and it turns out someone borrowed against GUSD almost taking the whole supply.

PersonWhoThinks

**Disclosure**: I am a BTC bull and I desire more BTC but want to increase without risking (too much) my current position. **Strategy**: 1. I supply some wBTC on AAVE, loan USDC at 2.25 health, then buy MATIC and WETH. 2. I set up liquidity pools on Uniswap for USDC/WETH-0.05% and USDC/MATIC-0.05% **Results**: Currently collecting fees at 50% APR over the past week. I am in a -1.5% loss position on USDC/MATIC and even on USDC/WETH. Long term I know the assets will recover and I will gain USDC on the equity in my LPs. But this could be well out into next year. **Fee outputs**: I collect the fees and convert to BTC or *BTC-yielding* STX on Coinbase and withdraw to wallet BTC or STX wallet for stacking. **Risks**: I get washed out and liquidated on a big drop in BTC/USD value or BitGo (wBTC issuer) gets fucked and my wBTC is worthless and it gets liquidated (and I’m happy to have the MATIC/ETH/USDC). Or Polygon or Ethereum networks evaporate and I’m really washed. I am very happy with this strategy, but what would you do differently fellow r/CC traders?

au80022

AAVE is a platform that gives people free money. Avi used the platform to stress test Curve and Aave itself. Aave passed the test.

yourmom_fat_as_hippo

That's the point. This was AAVE V2. they were going to implement AAVE V3 later this week, which has such fail-safe mechanisms. It was hence the perfect time by Avi, to strike before V3 was deployed.

Practical_Bathroom53

Are all of the attractive APYs in crypto possible due to “FTX Type Behavior” where they basically gamble with your deposits to be able to afford to pay out these APYS? Not sure how else a CEX or Defi platform can afford to pay like 5-12% on stable coins. AAVE and Curve type APYs make much more sense (for example).

moonRekt

I want to learn more about AAVE as well

wealth4good

Sounds like Avi got AAVE'd... as in hosed. He bit off more than he can chew.

Squezeplay

The ability to liquidate was impaired by the majority of CRV trading happening on Binance, and the delay in moving CRV from Binance to AAVE. If the majority of liquidity was on chain, AAVE may have handled it better. An improvement needs to be made to take on chain liquidity into account to limit outsized loans, although this is difficult.

RandoStonian

Damn, that is some really interesting stuff! Where do people go for discussion about AAVE as it's happening in real-time? Just following the right people on Twitter? The AAVE forums or their Discord?

Part-Select

i understood that something happened with CRV and AAVE but i didn't get the rest bru

Primary_Technical

AVi clashed with AAVE and went home ...

iamjide91

I think Harvard should tell central banks the real truth; DeFi platforms like DAFI protocol, AAVE, Thorswap, etc will completely replace banking services. It's just a matter of time.

WholeHogRawDog

1. “As bad as it seems right now, trust me, Mt. Gox was worse.” It doesn't even matter that you weren't around or even aware of crypto when that infamous exchange went down in early 2014. Nobody can really disprove the statement. And it gives you credibility about having a long-term perspective. You know the ups and downs. 2. “The collapse of FTX just validates... crypto.” This is really the key one that you have to keep arguing over and over again -- that FTX and these other entities that went down this year were just traditional banks that had bastardized the vision of Satoshi Nakamoto. There was nothing "crypto" about them and it's good that they're gone. Next cycle, we need to move more and more activity on chain (just don’t bring up Luna!). 3. “Real crypto is working just fine.” Point to the various decentralized exchanges (like Uniswap) or lending platforms (like AAVE) that have continued to operate, without seizing user money. This is the future! And it works today. (Again, don’t bring up Luna.) 4. “Oh you want to mock crypto? I guess you've never had to make a payment in a developing market.” If the arguments about "real" crypto aren't working, then you have to establish your moral superiority over your relatives. Talk about how privileged everyone else at the dinner table is for living in a country with a functioning banking and payment system. (Feel free to say this, even if you yourself have no personal experience with making payments in a developing market either.) 5. “Crypto already has numerous use cases, like stablecoins.” If anyone asks what crypto is, you know, used for (and someone will!) point out how there's over $100 billion held in stablecoins on Ethereum alone, and how this is a better way of making payments than traditional apps. And if you want to appeal to the patriotic instincts of anyone at the table, argue that this crypto is covertly expanding global dollar supremacy by making USD holdable by anyone with a smartphone anywhere in the world. There are some other things you can point to as “use cases” as well. Show how easy it is to post your Ethereum as collateral to get stablecoins. Ask them if they can do that with their Tesla shares on Robinhood. They can’t. Then sell some coins with a few clicks and ask them if they can do that on Robinhood. Oh wait, they can’t do that either because the market is closed on Thanksgiving. Checkmate! 6. “Of course crashes happen. But outside of just trading, crypto is changing culture and art.” This is where you bring in the influence of NFTs on art and music. Talk about how you're all about supporting creators and how traditional models hurt artists and fans. Maybe say something about the Taylor Swift/Ticketmaster fiasco as evidence of the old business models being broken. How do NFTs solve the Taylor Swift problem? Unclear, but that's for another conversation. Of course, be careful. One piece of advice: Maybe acknowledge that the apes look dumb, just as a way to shore up your credibility on this point. If anyone does bring up the apes, point to some cool on-chain generative art or something like that. 7. “Crypto is going to change gaming.” This is the corollary to the art discussion. Point to the kids in the family that have left the dinner table to start playing video games. Gesture towards them and talk about how that generation is digital first, and will want to actually be able to own the items that they play with online. Owning their characters and so forth. Moving them from game to game. Acknowledge that the first generation of crypto games were not that fun, but that better gameplay is coming soon. 8. “Bubbles are a crucial part of the innovation process and often leave behind productive infrastructure in their wake.” This is tricky, but sophisticated. Point to the railroads that were left behind after the railway bubble in the 1800s. Point to the telecom infrastructure that was built amid the dotcom boom. What's the equivalent for crypto? Well there's nothing physical you can point to that's the equivalent of railroads or bandwidth. So your best shot is to talk about the accumulated knowledge gains that have been made in cryptography and computer science, as a result of all this speculation. Talk about zero-knowledge proofs, and how this privacy tech will have a profound, positive impact on how we use the Internet. Argue that any financial institutions, even TradFi ones, will benefit from having to cryptographically prove their solvency at all times. You can even talk about Automated Market Makers, and how if you stipulate that right now they’re just being used for the trading of magic beans, that one day they can be used to trade equities or currencies without the need for a middleman. The code that’s been built up to support crypto trading is the infrastructure that will power a future golden age of financial markets. 9. “We needed a crash to weed out unhealthy speculators.” Maybe the line about bubbles being good and necessary is unconvincing. So instead talk about how crashes are good and necessary. Crypto is a long game, and it's good for the ecosystem that the newbs and short-term pump and dumpers are out of the game. Now it's time to build! And since you're still here, arguing with family at Thanksgiving, then obviously you weren't just in it for the quick buck. You're one of the good ones, and in it for the long haul. 10. “It's a mere 485 days until Bitcoin's next halving!” It can’t possibly be priced in yet.

Aheuhue

My shillville picks that don't include btc/eth: DOT, ADA, MATIC. "Blue chips" for me. AAVE now replaces BNB for me. Defi pick yet accessible on CEX. ALGO not because of the tech or anything, but because so many fans are Apple level enthusiasts in the red. GRT is pretty marketable.

Gabba-

I have quite a few top 10s I'm holding out for (like everyone)but to name two lesser known projects that I feel have a promising future, but extremely small market caps.... early projects: Satoshi Swap - DEX margin trading platform from the Satoshi Swap subreddit. Fringe Finance - I don't know this project is not talked about more. It's like AAVE but for mid cap cryptos. Borrow crypto backed against your crypto kinda thing.... the platform was released a couple months ago...curently very low TVL right now but next bull run. Read the white paper. You heard it here first. Anyway that's my shills over.

Gabba-

I have quite a few top 10s I'm holding out for (like everyone) but still but to name two lesser known projects that I feel have a promising future, but extremely small market caps.... early projects: 1. Satoshi Swap - DEX margin trading platform from the Satoshi Swap subreddit. 2. Fringe Finance - I don't know this project is not talked about more. It's like AAVE but for mid cap cryptos. Borrow crypto basked against your crypto kinda thing.... the platform was released a couple months ago...curently very low TVL right now but next bull run. You heard it here first. Anyway that's my shills over.

Every_Hunt_160

He could have ridden off to the sunset with $33 million from Mango But no, he had to gamble and risk it on AAVE and lose millions as a result lol

CrowdGoesWildWoooo

AAVE just encountered bad debt situation.

Fullback22x

It’s a governance token that lowers fees and lend. It is not tied to any persons deposits. https://docs.aave.com/developers/deployed-contracts/security-and-audits This is AAVEs security audits, you can go look at the contracts yourself. Additionally, AAVE is decentralized and the only way to update a contract on v3 is to have a community vote. Additionally, AAVE v1 and v2 do not have proxy contracts so no, you can not just change the contract. You should probably read up on DEFI before posting these things. It’s very clear you don’t have a clue how these things work. I would also suggest Economics and finance 101 courses. Sees to me you just found out what shorting is and it’s your first day in DEFI. I really don’t want to be mean here but you are the OP of a post trying to call out one of the most audited, biggest, and longest standing DEFI protocol and you have zero clue how basic economics and DEFI works. It has became painfully obvious and I do not have the time to spoon feed you this stuff anymore. It was a great attempt at moonfarming so I’ll give you that.

Fullback22x

In this scenario you are explaining something that requires a metric shit ton of liquidity to happen, but in another post you explain how there is no liquidity. I’m beginning to think you have zero clue how this works. You are describing a short position. Which will decrease the liquidity in ETH. Either they run out of assets to use to short ETH or they get fucked by the fact there will be 1000% APY since there is a liquidity crunch in the ETH pool and you will see negative APY in the stable coin pools attracting many many people to the opposite side of your trade. Looping your short positions will leverage up those APYs against you. Either you get called and liquidated or the pool does. But that’s just market principles. Has absolutely fuck all to do with AAVE as a platform going under.

Fullback22x

Are you high? I can literally see on-chain that AAVE didn’t borrow against users deposits… you can check out the smart contracts yourself and verify that it’s impossible for anyone but yourself to borrow against your position. You are either trolling or don’t understand basic market principles. What you have described is a liquidity crunch, which happens every single day in some area of a market. Has absolutely zero to do with AAVE. If the smart contracts work as advertised then your scenario of AAVE failing makes zero sense.

Fullback22x

I get this. But this still doesn’t make AAVE the platform go broke. It’s shorting a market. If you are lending or longing ETH on AAVE and someone shorts the absolute fuck out of it then yea you are going to get liquidated or take heavy losses on your king position. But that has nothing to do with AAVE. That’s just a free market working as intended. I still fail to see how AAVE would implode. Maybe this should be titled “People long and/or leveraged in a bear market will lose money” which is what would happen, but again, I fail to see how this has AAVE go under.

ripple_mcgee

It's not AAVE's ETH, it's mine because I've supplied it through the DeFi protocol. I hope this is clear...its not aave itself that will lose money or go broke, its the users of the platform.

dkeeey

But you don't need to borrow more than you deposit. You just pay back the same amount you borrowed but the token you pay back with is worth much less. Then you repeat the process until there's no more ETH left to borrow. And if people don't borrow stablecoins with ETH as collateral then AAVE could quickly run out of liquidity.

Fullback22x

But that doesn’t make AAVE go broke. I seem to be missing something here as well. I can’t take out more USDT/C than the ETH I deposit, it’s the same in the flip side. I get auto liquidated if my loan isn’t healthy enough. I could see AAVE losing money in fees but certainly not going under. The smart contracts and over collateralized loans make this literally impossible unless I’m missing something.

Giga79

The creator of this video has a very poor understanding of Aave, or maybe I do. First they're worried about a $1M and $7M loan Aave owes after stating they have $7B of ETH custodied. When the protocol is earning $500k-1M every day I don't think that's a red flag. Then they state the ETH locked up in FTX won't be able to be repaid to Aave. Except Aave doesn't send letters for you to repay, the smart contract auto liquidates under the right circumstances - as soon as your loan would turn negative. If *no one* repays their loan AAVE still can't go broke themself as they don't offer credit and every loan is over collateralized. And users can still add collateral to their loans without FTX. If ETH makes another leg down, the protocol will just liquidate those accounts and carry on as usual. It's a very strange hit piece. As far as I know Aave is not centralized, so I don't think the assumptions made in this video hold any truth. They're absolutely not the same thing Celsius was.

LivingFondant1419

Theres a whole host of problems at $700ish, the least of which is AAVE going broke

JoshuaB123

Never a boring day in the crypto industry…. Genesis and AAVE could potentially blow up in the next few weeks.

NamelessHooman

Please dont die AAVE! I wanna see you on the other side once bear cycle ends

Ofulinac

That would be a shame as AAVE is one of my favourite DeFi projects.

WB_7

[Debunking the AAVE fud](https://twitter.com/the3d_/status/1595122276055539718?s=46&t=l4-CsyK2dpYHoVzPhjMYXw) I saw a few twitter posts being shared earlier fudding AAVE and predicting huge bad debt from CRV (@napgener specifically), they’d failed to account for dynamic orders so in the end the total bad debt was only $1.3m (fish money) and the protocol will be strengthened

pay85

Why AAVE?

il_duomino

I agree with you on ETH. I think it has found its place in the market. What's so appealing about AAVE to you and how does it differentiate itself from its competitors?

TroubleInMyMind

ALGO, BAND, LINK, AAVE, I don't even consider ETH and alt anymore but I'll list ETH for good measure.

interfoldbake

Genesis + AAVE

WB_7

Twitter, but AAVE is fine. Just a few people on Twitter trying to manipulate a squeeze for their longs based on on chain CRV activity. Bad debt wouldn’t be anywhere near enough to take AAVE down- CRV pump seems to be losing steam already