This week, Anna and Tarun chat with Stani Kulechov, co-founder of Aave, about the origin and evolution of the project, the changing DeFi landscape, collateralized debt in crypto, Flash Loans, Flash Minting, Credit Delegation and the future of DeFi.

Quick recap: A Flashloan is an uncollatoralised loan which must be issued and repaid in the same transaction before the blockchain updates the user’s account balances. If it isn’t repaid in this time, the transaction will fail.

We have discussed Flashloans on the show before see this previous episode:

https://www.zeroknowledge.fm/118

Thank you to this week’s sponsor Hermez Protocol!

Hermez is a Layer 2 solution that scales token transfers on top of Ethereum and which can handle up to 2000 transactions per second. Designed for high-frequency tokens, Hermez is a zk rollup which leverages zk-SNARKs for validity proofs and with on-chain data availability.

Hermez's zero-knowledge circuits are developed using iden3’s circuit compiler language, Circom. They also introduce a novel consensus algorithm, Proof-of-Donation, that gives 40% of each transaction fee back to Ethereum community projects as a donation, thereby supporting Ethereum development.

After passing two security audits, Hermez is running a bug bounty program, offering up to 100 ETH to whoever discovers any critical vulnerabilities. We recently had Jordi Baylina, Technical Lead at Hermez, on the show for an interview - you can find that episode here. Learn more about the project and bug bounty at https://hermez.io/

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