Funding Abundance: Aave’s Vision for DeFi and Real-World Assets | Stani Kulechov
Episode publishedPodcast: Bell CurveBell Curve
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Effectively, DeFi has the infrastructure. It has also the capital. They can move faster on a on a smaller start up scale compared to big financial institutions. And and that is why I think it it's a massive opportunity for for for DeFi and ARBE specifically. It's an opportunity which is between 15 to $50,000,000,000,000.
This episode is sponsored by Canton, the only public permissionless blockchain built for institutional finance. We'll hear more from Canton later in the episode. Blockworks Digital Asset Summit is back in New York March. We'll have top speakers from leading asset managers, financial institutions, DeFi protocols, crypto companies, and policymakers all under one roof. Think BlackRock, Coinbase, Robinhood, and more. Follow the link in today's show notes to buy tickets and make sure to use code bell 200 for $200 off at checkout. See you there. Hey, everyone. Quick disclaimer before we get into tod
Thanks for having me here, Michael.
Yeah. This will be fun. We're talking about a month out from DAS, so I'll see you in person in New York soon as well. Are you spending are spending you a bunch of time in New York these days? What's your there's like this theme about the institutional pull up New York, but how much of your time are you spending there?
Quite a lot, actually. I'm I'm gonna be in New York next week. So yeah. And quite quite a lot. There there's a lots of institutional demand at the moment. RWAs with what we're doing with Dolby Horizon that has a lot of connectivity there. So I'm I'm really excited about that because I think now than ever before, we we have the highest institutional interest at the moment on on chain. So I'm I'm super excited.
You know, I gotta be honest. The we talked about this at and we'll this will segue into what I would love to start with is this this blog post that you wrote, Aave will win as a jumping off point or a funding abundance, actually, is the title of the blog post. But I've been saying this a couple times at DAS over the years now that there's a real divergence in between there's always been kind of the crypto native side of crypto and then the institutional side, and the sentiment divergence is so wide at the moment. I mean, people in the the crypto native trenches are not doing quite so hot, but
No. And I I think, like, on the native crypto side, you know, like, for example, DeFi has grown, like, significantly. And and if if you look at, for example, the growth that Abe, for example, has had last year, we peaked at 76,000,000,000 net deposit, 30,000,000,000 outstanding borrows. Most of that was basic native crypto. So growing as the native crypto assets are growing. But in the context of RWAs, extremely early. So DeFi has big $220,000,000,000, it's now 120. And when we look at the RWA market cap, that's 25,000,000,000. It's very early. And it feels that every institution that we're ta
I completely agree with that. And maybe this is a good way to transition into this blog post of yours in this new massive $30,000,000,000,000 market that you're attacking. So the the title of the blog post that you wrote is funding abundance. And you started the blog post by kicking off your perspective on the state of the union of DeFi and what the bottleneck is in general, which is kind of on the demand and the capital side. But before you get into the opportunity that Abe is attacking here, can we just get a sense of, yeah, state of the union, what's working? What what is the bottleneck tha
Yeah. What we did extremely well in DeFi looking at the past few years is that we were able to create this very
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