Curve founder: KelpDAO was attacked, leading to bad debts for Aave and exposing non-isolated lending risks
Michael Egorov, the founder of Curve Finance, posted on the X platform expressing hope that Aave can address the relevant issues. He pointed out that non-isolated lending has good scalability but carries higher risks, with the key being risk management, an area where Aave has historically performed well.
He stated that the market can adopt a fully isolated model like that of Curve Finance or a hybrid model, although the latter is very complex, it is feasible. However, the market has yet to understand its advantages. Michael Egorov also mentioned that Aave v4's hub and spoke model might be a step towards a semi-isolated and safer direction.
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