AAVE's situation today


Seems to be a positive signal for protocols like morpho and spk.
Actually, I think it's a negative signal for the entire DeFi lending sector.
Systemic risks are fully exposed.
Composability means managing your own risk is useless; if the shortest plank in the barrel breaks, it will affect you too.
These lending protocols are not in a zero-sum relationship,
The market hasn't priced in this kind of systemic risk at all.
Enjoying that 10% APR in the protocol, there's simply not enough risk compensation.
AAVE-2,29%
MORPHO-2,75%
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