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      Debate Erupts Over Morpho's Vault Classification Proposal in DeFi Community

      Paul Frambot, the founder of Morpho, has proposed a new classification system for on-chain vaults, suggesting a division into 'noncustodial' and 'discretionary' categories aimed at regulatory clarity. This proposal has sparked significant debate within the decentralized finance (DeFi) community, particularly from Aave founder Stani Kulechov, who criticized the split as 'self-serving.'

      Kulechov's remarks highlight concerns among vault builders who argue that simply implementing a timelock feature does not eliminate the influence of vault managers. This contention raises questions about the implications of such classifications on the operational dynamics of DeFi protocols and their regulatory treatment.

      The ongoing discussion reflects broader tensions in the DeFi space regarding governance, control, and compliance with emerging regulatory frameworks. As the industry continues to evolve, the outcomes of these debates may significantly shape the future landscape of decentralized finance.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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