13h ago
Vault-based lending markets are broken. Allocators move capital from the vault based on their own needs, not always the market’s. In the end, borrowers always pay the price. That’s why @avon_xyz won’t have allocators.
14h ago
Study curators on Morpho & Euler > Supposed to act as risk managers for users > xUSD launched 6 months ago > No proof of reserves > xUSD degen farming 4x leverage on-chain > Curators allocate users' funds into xUSD lending markets > Risk management based on trust me bro
The good thing is, even without allocators, lenders still get risk isolation, and borrowers benefit from the aggregated liquidity depth.
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