The cryptocurrency lending and borrowing platform Aave announced that it plans to launch a version authorized to institutional investors during this month of July.
Aave Pro launched in July
In only 4 years of existence, the platform Aave has become a major player in decentralized finance (DeFi). This is a project that specializes in cryptocurrency lending and borrowing. More precisely, Aave allows users to invest in pools to create liquidity and recover interest, allowing other users to borrow cryptocurrency.
Background Aave are currently divided between 4 markets : AAVE V1, AAVE V2, AMM, AAVE Polygon. Cumulative, the total pool currently reaches more than $ 16 billion. Necessarily dependent on cryptocurrency prices, this pool even exceeded 22 billion dollars in early June.
Soon, Aave should be available to institutional investors via a pro version simply named Aave Pro. It will be launched in partnership with Fireblock.
At first, Aave Pro should only support 4 cryptocurrencies : Bitcoin (BTC), Ether (ETH), USD Coin (USDC) and Aave (AAVE). The pools will be separated from the markets already in place at present.
In order to make this version accessible only to institutional investors, companies, institutions and fintechs will need to obtain the verification Know Your Customer of Fireblocks. The partnership with Fireblocks also aims to establish a anti-bleaching control and anti-fraud.
Mixed reactions
For many observers, this new project is good news and should facilitate the integration of institutional investors into the DeFi.
However, some are concerned about the partnership with Fireblocks. Indeed, the company is currently being sued by StakeHound following a deletion of private keys within a $ 72 million ETH wallet.
Other users are mostly skeptical about the arrival of institutional investors and what they can bring to the cryptocurrency universe.
With its version Aave Pro, the more than $ 16 billion platform presents itself as a wise choice for institutional investors. She decided to partner with Fireblocks to regulate the future operation of its pro offer. But despite its rapid growth, Aave must face competition that also intends to attract institutional investors. The battle between Aave, Compound and Venus is not over, meanwhile the price of its token records a rise of more than 20 %.
My interest in new technologies has teleported me into the blockchain universe. Dimension both complex and so vast that my brain first reacted in “Error 404 ” mode bordering the spatio-temporal flaw before I gradually understand the codes.
The road is still long before getting the salvation of the Crypto god, but in the meantime I take the opportunity to share my passion with you.
DISCLAIMER
The words and opinions expressed in this article are the sole responsibility of the author and should not be considered as investment advice. Conduct your own research before making any investment decisions.
