In a recent fireside chat at the StarkWare Sessions event in Tel Aviv, Israel, Aave Founder and CEO Stani Kulechov shared his thoughts on the DeFi space and its potential for wider adoption.
During the interview with Cointelegraph’s managing editor Alex Cohen, Kulechov emphasized the importance of stablecoins and payments in onboarding regular people into DeFi.
Kulechov stated that DeFi has an advantage over traditional finance products due to its ability to precisely quantify risks, which could result in cheaper operating costs.
He believes that by building a payment layer, DeFi can hook regular people into the space and eventually introduce them to other DeFi offerings.
However, Kulechov acknowledged some challenges in the stablecoin space, including the amount of value within the ecosystem and the collateralization of decentralized stablecoins.
He noted that there is currently not enough value in the ecosystem, leading to less backing in decentralized stablecoins compared to centralized stablecoins.
When asked about the future of DeFi, Kulechov expressed confidence in the space, stating that it will be around for a long time and will serve as infrastructure for many applications.
He also noted that there are many new innovations in DeFi, even finding their way into non-financial applications.
Overall, Kulechov’s thoughts on DeFi highlight the potential for wider adoption and the importance of stablecoins and payments in onboarding regular people into the space.
As DeFi continues to evolve and solve problems in the financial industry, it is likely to become a more integral part of the financial landscape in the future.