My thoughts on the Kamino fake liquidations data scandal. There are two possible explanations: 1. Kamino team truly did not understand what liquidation means. The way liquidations are treated is literally the *most* important risk parameter in a lending protocol. If they don't understand this core tenant of lending markets, what else don't they understand? Are they competent enough to trust with your deposits? Not understanding what liquidation means is completely unforgivable for a lending protocol, so maybe there is an alternative explanation: 2. The alternative to incompetence is that the Kamino team was actively misrepresenting a core part of their protocol in order to mislead users and attract deposits. Which is worse?
Tushar Jain
@tushar_jain
12-07
My thoughts on the Jupiter collateral scandal. There are two possible explanations:
1. Jupiter team truly did not understand what isolated collateral means. The way collateral is treated is literally the *most* important risk parameter in a lending protocol. If they don't
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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