
Ignas | DeFi|Jun 02, 2025 13:46
Simple yet brilliant security model from Aave.
Using a native token for security is flawed:
Hack occurs -> token value drops as investors anticipate sales to cover losses -> value falls further when tokens actually are sold.
Now, lent assets like USDT or ETH are staked and slashing happens automatically in case of bad debt - no governance risk.
Other protocols should follow.
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