People think of Aave and Morpho as competitors. But Morpho only lost $1 million when North Korea drained $300M from a DeFi protocol. The architecture explains why.========================================================Thank you to our sponsors!Coinbase One20% off first year of annual plan + $50 Bitcoin bonus. Offer valid until May 31.coinbase.com/unchainedCitreaBitcoin changed how money works. Satya changes how Bitcoin scales.citrea.xyz/unchainedEther.fi15% cash back on food and ride apps, 3% on everything else.ether.fi/unchained========================================================After North Korea's Lazarus Group drained nearly $300 million from Kelp DAO's bridge, the contagion spread fast, leaving close to $200 million in bad debt on Aave. Morpho, one of the largest lending protocols in DeFi, ended up with about $1 million in exposure. Paul Frambot, co-founder and CEO of Morpho, explains why the protocol's modular, isolated architecture produced a different outcome, and what it reveals about how DeFi lending is supposed to work. He also addresses the ongoing debate over whether DeFi lenders are fairly compensated for risk, the institutional reaction to the hack and what it means for the sector's timeline, the moral complexity of Arbitrum's decision to freeze stolen funds, and why formal verification may be DeFi's last line of defense in an age of increasingly powerful AI.Host: ⁠⁠⁠⁠⁠⁠Laura Shin⁠⁠⁠⁠⁠⁠, Host / UnchainedGuests: ⁠Paul Frambot, Co-founder and CEO of Morpho LabsTimestamps🦋 🔑 🏛 🔍 📞 🤔 🚀 🤖 Learn more about your ad choices. Visit megaphone.fm/adchoices