Aave founder: Immutable oracles and interest rate mechanisms could trigger systemic risks, worsening conflicts of interest among asset managers and increasing industry vulnerabilities.

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Foresight News reports that Yearn community member Schlag tweeted, “The reason for the losses in Stream is due to high leverage, directional trading, and opaque fund usage. DeFi projects should focus on standardization and transparency; treasury operations should not only pursue profits but also strengthen risk management.” Aave founder Stani Kulechov reposted and commented, “The issues mentioned regarding immutable oracle price feeds and the interest rate curve mechanism are highly warning signs. Such design combinations could potentially lead to disaster for lending protocols. Some asset managers are taking on excessive risks to gain a competitive edge, further amplifying industry vulnerabilities. Building a safe and robust DeFi system is inherently challenging. Currently, not only are investors lacking thorough due diligence, but there is also a widespread lack of risk awareness at the protocol integration level.”

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