Aave Follows Footsteps of Compound Treasury and CoinBase X, Offering Institutional Support

AAVE takes a big leap forward into the realm of crypto institutional support.

By
John Tunney
on
July 7, 2021
Category:
Blockchain News

Aave Pro. Coming This July? 

It appears that Aave plans to enter the institutional support space sometime soon before the end of the month, offering crypto support to large institutional investors. The news comes from an email from a Blockworks webinar entitled “Next Steps in Institutional DeFi” from July 3. Noah Goldberg, crypto trader and founder of Gold Beech Capital, leaked the event recap through a Twitter post on July 5th. 

The email states that Aave and Fireblocks plan to launch “Aave Pro” in July, which will “enable institutions and corporates to access DeFi yields and benefit from the transparency and automation of decentralized finance.”

The roundtable, attended by the CEOs of Aave, Fireblocks, and Galaxy Digital, discussed institutional challenges for Decentralized Finance (DeFi). 

Source: The email is shown above.

According to the leaked email, Aave Pro will include liquidity pools for Bitcoin, Ethereum, USDC, and Aave. The Aave Pro pools will be separated from the other Aave liquidity pools and restricted to select institutions and financial technology (FinTech) companies and corporations.

Goldberg further Tweeted that he believes Aave will “attract sophisticated institutions that would like to take a more granular approach to DeFi lending activities.”

Fireblocks, a digital asset security platform, plans to implement better security measures to protect the liquidity in the Aave Pro pools and implement contracts to ensure only large institutions can enter the pools on Aave Pro. The email also confirmed that the Aave governance protocol will govern Aave Pro. The inclusion of doxxed institutional clients represents an attractive shift by institutional partners to undercollateralized lending and credit markets.

Source

Standing Shoulder to Shoulder

Aave is not the only large DeFi protocol to offer tailored access to high-performing yields in crypto for massive institutional investors. Oddly enough, Coinbase and Compound Finance both launched their own institutional-focused yield programs for companies and FinTechs just four days ago. Both Compound and Coinbase now offer a 4% yield on USDC strictly for large institutional investors. 

Aave early on looks to separate itself from the pack by offering liquidity pools for the stablecoin USDC on top of Bitcoin, Ethereum, and Aave. Although the news and details on Aave Pro only come from a leaked email, it is not surprising to see Aave is gearing up to join the few but proud platforms that now look to offer programs strictly for large corporate investors. What does this mean for the DeFi space? Time will tell, but the crypto community looks excited for the potentiality of a massive influx of cash coming to the crypto space. 


What is Aave? 

Aave is a decentralized platform in the crypto space that lets users and investors borrow and lend assets. Aave also allows for sophisticated investors and developers to take advantage of arbitrage through Aave’s flash loans while at the same time providing lenders high annual percentage yields (APYs) on popular coins, tokens, and stablecoins. Founded in 2017 by Stani Kulechov, Aave has grown into one of the most prominent protocols in the decentralized finance space. The platform has done an excellent job making it easy and accessible to all, which has done wonders for growing its popularity. 

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John Tunney

John Tunney is an accomplished analyst and crypto enthusiast. The UCLA alum has been actively reporting and blogging for 3 years, and has a passion for all things finance.

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