Aave governance proposal for $50M institutional lending facility raises risk-design questions – Link
A proposal in Aave governance would create a $50M institutional lending facility structured so it could lose money even if every borrower repays in full with zero defaults. The problem sits in the facility's design, not credit risk.
A proposal in Aave governance would create a $50M institutional lending facility structured so it could lose money even if every borrower repays in full with zero defaults. The problem sits in the facility's design, not credit risk.
Aave keeps pushing into institutional DeFi lending, but this loss mechanism needs real governance scrutiny before it ships.