Ryan Sean Adams

And so in V4, if you, Ryan, are collateralizing Ether to borrow USDC and I'm collateralizing FTT, the Sam Bankman high concentration, low float token.

Yep.

Aave will charge me as the FTT collateralizer a much higher premium than you for collateralizing ETH because ETH is money and FTT is a scam.

And so at first there's like one defensive layer off of that.

Second, there are credit lines as like blast radius constraints.

And so the credit lines are created by the hubs to govern the spokes.

They set limits and conditions for borrowing.

And so Aave is the main risk manager of the hub, and they will govern over the size of the collateral, the size of the credit limit, which constrains the damage any one spoke can do.

So it's a little bit of a trade-off.

It's not completely constrained, but it is balanced between the two ends of the spectrum.

It is worth highlighting that the explicit intent is that users never really interact with the hub directly.

They interact with spokes, right?

Not dissimilar from the Layer 2 model.

Remember when we were saying users go on the Layer 2s?

This kind of, to me, Ryan, mimics central banking, where you have the hub, the central bank that governs the spokes, the commercial banking layer, and it determines the interest rates, who's got the money, all this kind of stuff.

And so...

Users go to the spokes, the spokes are the commercial banking layer, and then the spokes are governed by the hub.

And so this is Aave going into like a platform model.

without phantom fees and then phantom has a debit card there's another convergence happening here where crypto wallets are becoming a bit more trad five friendly yeah yeah i mean especially when we got the doors blown open by the cftc and the sec about financial super apps like we have the green light and now the race is on to build the phantom super app absolutely

Something that caught my attention this week, Apex is now building on Base, A-P-Y-X.