Thread by @ChainLinkGod

Next on #SmartCon is a panel with @StaniKulechov and Sheila Warren of @wef with host @zackseward of @CoinDesk

How is Aave different from Compound?

Stani: Always difference in features, Aave has collateral swaps, flash loans, stable borrowing rates, and different way of setting parameters, communities access risk, Aave community has a different risk assessment framework

What is your view of Polkadot ecosystem

Stani: Ability to use main network to secure parachains, ecosystem isn't fully ripe yet but once it is, interesting to whole Aave community to deploy on there

CLG question: How important is Chainlink Price Feeds and Chainlink Keepers

Stani: Increasingly important, as more value is captured, Chainlink will provide the data, also showcases how valuable Chainlink is for Aave and DeFi, and the role the community plays

Aave ARC, any updates on shipping?

Stani: Aave market is deployed on Ethereum and Polygon, but within Etheruem experimenting with a seperate private market with whitelister, Aave governance chooses whitelister, deploy mulitple ARC markets, first is based on compliance

Can create a market that higher compliance requirements, institutions can choose, same transparency as based on Ethereum, auditable every single second, smart contract execution, risk parameters set by Aave governance, provides soft launch for institutions to use DeFi

First market Fireblocks and other Fireblocks clients, starting small, talking to biggest banks globally and smaller ones, big interest, can't fit everyone into one market, everyone has different compliance requirements, targeted towards bigger funds, start slowly

Sheila, from the folks you talk to at @wef, what's the pulse check to institutional DeFi

Sheila: Depends on who you ask, something about Defi that will necessitate regulation, don't agree with view just port KYC in, regulation can cut off innovation before it shapes itself

How should we shape the conversation about regulating DeFi, square peg round hole

Sheila: Personal view, education, it's not enough to understand services, people put things into boxes they understand, assume DeFi mimics 1:1, encourage technical understanding is important

Look at the growth curve of the technology, what are the opportunities, like early day of internet, saw same concerns, premature regulations, not the wild west that people make it out to be, media has agenda, real principles to provide more democratized access to finance

Are out existing models going to fit in the 4IR future? Should we expect our regulatory system build under different understanding, we should encourage collaboration with these projects, doing this behind the scenes, open up models of regulation to protect DeFi values

1 to 10, level of sophistication and nuance that you're being asked, where are we

Stani: Not going to name names, widely varies, if you just look at media then it's towards 1, a lot of policy makers are trying to understand in a space that is complicated

Uniswap said they were talking to Paypal, eTrade, Robinhood, who is Aave talking to?

Stani: Aave has a lot of exposure due to its size as a protocol, many users, lot of inquiries and education, discussions with biggest investment and consumer banks, Fintechs, custodians, etc

If these protocols sink to the background, is that thesis smart or dumb

Stani: protocols will run in background and governed by community, build a social graph, social media protocol, blockchain as a store of value, those protocols will run by themselves, just governed

Sheila, what's your view on how DeFi will be used as it reaches mainstream adoption

Sheila: DeFi will become commonplace, dependent on regulations, sink in background and become household name both, suite of services that will start to thrive, protocol matiance or build services

Stani, what's the next big DeFi milestone you are looking for that signals DeFi taken next step

Stani: Aave ARC working as designed inspiriting institutions that it's good software to replace existing systems in finance, software not businesses, more fair democratic

Sheila, same question

Sheila: Clarity around the direction of regulation, biggest challenges, once less regulatory turbulence is when things take off and people grow confidence

Thank you @sheila_warren and @StaniKulechov and @zackseward for the great panel