The Role of DeFi Risk Curators | Adrian & Tarun | S9 E5
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And the difficulty with DeFi is that, you know, the the effective duration of DeFi has always been twelve seconds or the length of a block. And this is also why it's this is part of the reason why when you have our arbitrary lengths of duration in fixed rate protocols, the liquidity completely dries up in that period, especially when there's an absence of other lenders or other users of that fixed rate at that particular maturity point in time. So, yeah, leaning on the curator to essentially make that market a bit more liquid is a valuable service.
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Hey.
Hey. Okay, guys. So this episode is gonna be really fun. We spoke to Paul Frambo of Morpho, on their v two, and we spoke mostly about borrow lend, stable coin trends, vertical integration, that type of stuff. And we touched on risk curation as a genre, but we thought it might be fun to go, one layer deeper even than we did on the Morpho v two episode and speak to, the two largest risk curators on the market. And, Monet also, is involved, with BA Labs. So I'm the only non risk curator here, so I'll mostly be staying out of everyone's way. But, we've got a lot of ground to cover. And maybe just
Yeah. Definitely. It's, I think Morpho is definitely the instigator of this change. I mean, there's always been an element of user driven behavior and protocols like Uniswap where anybody could sort of create their own pools for any token. But I think Morpho was really the first to have this clearly defined nomenclature and role of a curator that I feel is kind of two things. One of them is modularization. So this fits very well with sort of Morpher's philosophy of having the smallest possible financial primitive that you can build. And then when you stack those on top of each other, you can c
Tarun, I I'd love to get your take on this as well. And maybe if you could give a little bit of an overview about how Gauntlet got into this because I think most people, myself included, until relatively recently have thought of Gauntlet mostly as kind of an advisory or consulting sort of group. And recently from my understanding, it seems like risk curation is larger and larger part of the business. So could you just kind of give us, you know, the evolution from the business standpoint and then anything to build on what Adrian said in terms of the development of the market?
Yeah. For sure. I mean, so we cut we started in 2018. At that time, I think the word DeFi didn't totally exist, like, Zarma and Compound v one, which doesn't really exist RIP. We're kind of the first I mean, Maker was obviously really the first but then those fast follow DeFi protocols were sort of the Armand compound at that time. And, you know, there wasn't much DEX liquidity. There's no Uniswap. And so, you know, we started actually in terms of, like, trying to optimize proof of stake protocols, like, how should they think about issuance. You know, actually, ironically, a lot of the stuff t
No. It's always good to get deep into it.
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