Aave is the world's largest onchain lending protocol, with over $1 trillion in cumulative lending volume. How does the protocol work? How is it governed? @LindaJeng1, Chief Legal & Policy Officer at Aave Labs, explains in this clip. It's an overcollateralized lending market. If you want to borrow $90, you put up collateral worth, say, $130. It's designed to avoid bad debt. That design changes the risk picture, something Linda knows well as a former bank regulator: "I used to be a bank regulator, so counterparty risk was probably one of the biggest things that I worried about when regulating banks. And here with Aave protocol, suddenly the risks are different. I think this is part of what's so exciting as TradFi is moving onchain." (@aave)