Donât be ridiculous. Nobody is trapping anyone into anything. If you deposit your money into a protocol, you should know exactly what youâre getting yourself into, especially when you look at 5 digit APYâs.
Or are you also going to complain that if you go into a full supermarket and you have to wait in the queue, that you are now trapped by the supermarket, and the supermarket or the frozen pizza manufacturer that makes such a tasty product is responsible for your waiting times?
In doubt for the accused, so why donât you first provide quantified calculations yourself on how exactly this market is broken, and then proof that the majority of users want this to change, rather than presume that just because the market is at 100% utilization itâs broken?
Besides all of this, many have locked their aAMPL in a staking contract which yields additional AMPL, so all of this is to be considered as well in these calculations, and respected as such.
Smug accusations of a honeypot are completely out of the order in a civilized discussion, and do not help in the slightest to improve upon the current, and it seems the conversation has forgotten the benefit of depositing AMPL on the lending side that youâre also protected from negative rebasing if your AMPL are lent out?
Once in a blue moon AMPL rebases hard upwards, so itâs more profitable to borrow for longer term, but now that people who wanted to play it safe, or others that have aped in without any due diligence are missing out, thereâs an outcry for regulation, but when theyâre protected from loosing money by lending out their AMPL, all is fine and dandy and the market works fine.
I canât help but to be reminded of the Fei Protocol launch, when everyone was crying for help because they were âtrappedâ and locked in by the protocol doing exactly what it was supposed to.
The core dev team have spent years finally getting this product to a live lending and borrowing environment, and the community and governance agreed it be the time, and this is by far the most interesting experiment that has happened on Aave since inception, and actually created a highly used and competitive market.
Compare that to letâs say the Ethereum market on Aave. Does that look like an effective or functioning lending and borrowing market to you? Everyone deposits ETH for 0.00-0.01% to use it exclusively as collateral, while nobody wants to borrow it because of the insane risk and low upside. A dozen other markets on Aave work in the exact same way, and are basically nothing more but a glorified Maker or Liquity.
I hope the Aave community & core contributor group sees that there is an incredible upside to have from this product, but it has to be handled with care and attention, and perhaps an âInnovationâ section needs to happen on the front-end with extra disclaimers to deter players that do not know what they can get themselves into from depositing their asset into bleeding edge technology.
Remember that neither Aave nor DeFi or Crypto is here to protect anyone from their own stupidity, and if you wanted to borrow up to a 1.05 health factor, youâre free and able to do so.
If you want other kinds of monetary âprotectionâ, maybe itâs better to stick to Traditional Finance and just open an old-school bank account.
, that doesnât change the fact that a lot of people do it though. Thereâs multiple "rugged"š users in discord each day for the last few days for what is a total of 20 addresses driving 80% of the borrowing.
