Pluto (Harbor) on the fate of DeFi after KelpDAO (EP.717)

Bearish:

• $AAVE - Aave's reputation as the gold standard in DeFi has been damaged by the hack, with potential for permanent capital flight from its $15B+ TVL as newer protocols build better security from the ground up.

  • “I'm almost wondering if this isn't like a great reset where like, yeah, Aave paved the way, But like they've been in the hot seat for years now. And maybe they're not maybe that TVL, 15,000,000,000 plus in TVL that's capital flight from Aave, maybe it never returns. And you know, maybe it goes to a different protocol that actually does build these things in from the ground floor.”

    Pluto·17:34
• $ARB - Arbitrum's value proposition is questioned given Ethereum's low gas fees and Arbitrum's inability to provide true decentralization after freezing transactions in the hack response.

  • “I think if anything, this does not bode well for Arbitrum, for example. Because even before this incident, I I didn't really understand the l two thesis. You know, my co founder and I talk about this all the time, like proof of work scaling on Ethereum, it's worked well enough that it still costs less than 1¢ to send any amount of USDT, right, in in normal gas times. So if I can spend less than 1¢ in gas fees to to send any amount of value on Ethereum, What's the purpose of, you know, something like Arbitrum in the first place, like, that offers decentralized scaling for Ethereum?”

    Pluto·26:48

  • “I think that after this specific event, they're neither here nor there. So why use it?”

    Pluto·27:37