Just for perspective, Aave DAO could buy a US bank for this amount of money. I think that’s a good opportunity cost framing.
Aave team can probably deliver more growth but even a poorly run bank has better net interest margin than a DeFi protocol. Not sure what Aave’s equivalent of ROE is, but banks typically have pretty modest ROE.
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Just for perspective, Aave DAO could buy a US bank for this amount of money. I think that’s a good opportunity cost framing.
Aave team can probably deliver more growth but even a poorly run bank has better net interest margin than a DeFi protocol.
Not sure what Aave’s equivalent of ROE is, but banks typically have pretty modest ROE.