Aave Founder Disses Kamino, Sparking Solana DeFi Debate

Aave's founder, Stani Kulechov, recently downplayed the significance of Kamino, a decentralized finance (DeFi) platform built on the Solana blockchain, during a discussion with key figures from the Solana ecosystem. The conversation, which took place on Twitter, highlighted the differing views on the state of DeFi on the Solana network and the potential for competition in the sector.

Kulechov, who is also the CEO of Aave, a leading DeFi platform, criticized Kamino for being a copycat of Aave's old technology, having a half-baked user interface, and restricting UK users from using the platform. He also expressed skepticism about the Solana Foundation's endorsement of Kamino as a better product, suggesting that the foundation was biased towards "homegrown" applications.

Anatoly Yakovenko, co-founder of Solana Labs, joined the discussion and compared the revenue generated by Aave and Kamino. While Aave has over eight times the total value locked (TVL) of Kamino, the Solana-based money market registered $52 million in annualized revenue compared to Aave's $126.3 million. Yakovenko argued that TVL is a cost that cannot be squeezed for revenue, highlighting the importance of revenue generation in the DeFi sector.

Kulechov responded by stating that the revenue difference occurs because Kamino takes a "bigger cut" from users' fees. He compared the USD Coin (USDC) Reserve Factor of both platforms, with Kamino taking 5% more than Aave. Kulechov suggested that the lack of competition on the Solana network is the reason for the higher fees, indicating that users are paying the price for the lack of alternatives.

Aave, with the largest liquidity in the money market sector, recently processed $210 million in liquidations following the market crash in February. In contrast, Kamino has added tools to its interface to help users leverage their borrowing positions. The conversation between Kulechov and Yakovenko highlights the ongoing competition and innovation in the DeFi sector, with both platforms seeking to attract users and generate revenue.