Stablecoin Adoption May Lead to DeFi Growth

The founder of decentralized finance (DeFi) protocol Aave believes that accelerated stablecoin adoption can lead to more DeFi adoption. Aave founder Stani Kulechov attended the StarkWare Sessions 2023, held at The Cameri Theatre in Tel Aviv, Israel to discuss several varying topics.

According to the Aave chief, identifying the risks in DeFi is easier than doing so in traditional finance (TradFi) products, which means that operating in DeFi is cheaper than the latter. He said: “You have all this visibility, you can actually 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.”

Kulechov also highlighted that stablecoins and payments build the “payment layer”, which if adopted more rapidly on a wider scale, it would attract everyday traders into the world of crypto and eventually into the DeFi space.

Sources:

https://cointelegraph.com/news/stablecoin-adoption-could-lead-to-defi-growth-says-aave-founder

https://cointelegraph.com/news/chainlink-oracle-data-feeds-coming-to-starknet-ecosystem