Aave Founder: Immutable Oracle and Interest Rate Mechanism Pose Potential Risks to Lending Protocol

BlockBeats News, November 6th, Aave founder Stani Kulechov commented on the reason for the loss in the Stream platform, stating that it was due to high leverage directional trading and opaque fund utilization. DeFi projects should focus on standardization and transparency. Treasury operations should not only pursue returns but also strengthen risk management.

“The issues with immutable oracle price feeds and interest rate curve mechanisms are highly alarming, as this design combination could pose a potential disaster for lending protocols. Some asset managers have taken on excessive risk to gain a competitive advantage, further amplifying industry risks. Building a secure and robust DeFi ecosystem itself is extremely challenging. Currently, not only do investors lack sufficient due diligence, but there is also a lack of risk awareness at the protocol integration level.”