Flash Loans - Mapping the esoteric landscape of DeFi

Andy talks with self-described ‘flash loans maximalist’ Stani Kulechov, founder and CEO of the Aave Protocol. We explore the increasingly exotic and esoteric landscape of Decentralized Finance or Money Lego - the DeFi ecosystem built on Ethereum. Against the backdrop of the recent DeFi exploits, we discuss the new flash loan innovation that allows traders to take out a loan without collateral by paying back the loan in the same smart contract transaction.  Why you should listen: Ethereum developers and the DeFi community see the emerging decentralized finance model as a genuine alternative to the legacy financial system. Listen as Stani explains his vision for the Aave protocol and the use cases for flash loans. DeFi is still in a nascent stage andexploits are an inevitable part of the growth cycle as the technology matures. These events are necessary to strengthen the system before it is ready for mainstream use.  Key takeaway: Decentralization is a journey, not a destination. DeFi may be the decentralized, accessible, immutable financial system of the future, however, the technology is new and still in the experimental stage. The current smart contract attack surface remains open to exploits. Supporting links: Aave Flash Loans Stani on Twitter  Aave on Twitter  Andy on Twitter  Brave New Coin on Twitter Brave New Coin If you enjoyed the show please subscribe to the Crypto Conversation and give us a 5-star rating and a positive review in whatever podcast app you are using.