Aave founder Stani Kulechov shared his opinion on the Defi vs TradFi crypto sector and noted that Defi protocols stand in a far better position over TradFi platforms in terms of many factors.
Recently In a fireside chat, the founder of the decentralized finance (DeFi) protocol Aave Stani Kulechov shared his personal opinion on the Defi sectors with Cointelegraph’s managing editor Alex Cohen. There they also discussed several topics of the Crypto sector.
Aave founder noted that quantifying risks in DeFi is better than TradFi platforms. He also noted that using DeFi is cheaper than TradFi because associated risks can be easily identified.
“You have all this visibility, you can quantify the risk more precisely which should mean that then you’re operating in an environment where it should be cheaper for you because the risks are more known.”
Further Kulechov also pointed out an important thing about the only TradFi users and noted that there is a need to work on the stablecoins & payment because these things will help to push people toward Defi protocols as a choice.
According to Aave’s founder, the majority of the stablecoins in the Decentralized Finance protocols are not getting better financial backing over centralized and this is the big reason why TradFi or say CeFi dominates over DeFi.
In short, Kulechov believes that Defi protocols adoption will surge continuously and the high-level use case will be available in the future but surely it will take time.
SberBank to launch DeFi platform
It is worth noting that recently many big financial companies showed their Inclination toward the Defi sector, to bring efficiency to the traditional digital financial system via the use of autonomous financial services more likely to Defi protocols.
Just a few days ago, Russian Bank Sber announced that it was working on its Ethereum network-supported Defi platform and before the March of this year, it will be launched by the bank officially.