$10.2B of borrowed Aave debt still clears through cliff risk, while Pendle's $1.24B TVL shows DeFi users will buy fixed-maturity risk when the primitive is legible. A CPPI loan turns collateral management into an explicit short-vol spread: borrowers pay via whipsaw bleed and lower upside, lenders need that spread funding a gap-risk reserve, not just cleaner UX. Curve's 10/10 postmortem is the check on the design: LLAMMA saved about 22% of at-risk positions, but the CRV-long LlamaLend market still carried roughly $700k of bad debt at ~70% backing after the gap.

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