Aave Pro Facilitates Entry into DeFi Market by Institutional Investors
Protocol for decentralized lending will be launched later in July by Aave, which is a permissionless platform focused on institutional investors. The latest initiative, named “Aave Pro,” intends to lure large businesses to the decentralized finance (DeFi) sector.
In collaboration with Fireblocks, a renowned crypto custodian and service provider, the Aave Pro platform will go online on a commercial basis. The introduction of Aave Pro came at a recently held webinar called ‘Next Steps in Institutional DeFi’ with participation from the CEOs of Aave – Stani Kulechov – and Fireblocks – Michael Shaulov. Joining them was prominent Wall Street veteran and Galaxy Digital CEO Mike Novogratz.
On Sunday, July 4, a Twitter user using the handle TraderNoah tweeted a screenshot of the email received by him after taking part in the webinar. The snapshot also displays the introduction of Aave Pro asserting significant demand among institutions.
Aaave Pro will list four digital assets at first: Bitcoin (BTC), Ethereum (ETH), Aave (AAVE), and USD Coin (USDC). The Aave Pro pools will be stay distinct from the rest of Aave’s services. In addition, the Aave Pro platform’s V2 smart contracts will have a whitelisting layer.
This would additionally guarantee that only “institutions, large corporations, and fintech companies” who have undergone the KYC check from Fireblocks may gain access to Aave Pro.At the behest of of Aave Pro, Fireblocks will also install anti-fraud and anti-money-laundering procedures.
Aave Pro will decentralize governance in the months ahead, according to the contents in the email. Aave co-founder Stani Kulechov revealed in May 2021 that they are working on a permissioned pool for universities. The aggregate value locked in with Aave’s three implementations is about $17 billion.
The community has had different views to TraderNoah’s photograph since it was posted on Twitter. This, according to a few optimists, will push institutions nearer to the DeFi domain. As a consequence, they’ll be able to interact with a number of essential DeFi apps and grow the network. Some, on the contrary, were skeptical about Fireblocks’ participation in the initiative.
StakeHound, a staking service provider, filed lawsuits against Fireblocks. The lawsuit centers on a contentious allocation of private keys to a wallet containing $72 million in ETH currency.
However, this isn’t the foremost time Fireblocks has partnered with a DeFi provider to primarily assist institutional clients. In the beginning of last year, Fireblocks collaborated with DeFi player Compound to provide services aimed at institutional players.
Aave secured a whopping $25 million in investment from certain industry’s biggest names, including Standard Crypto, Blockchain Capital, and Blockchain.com Ventures, in October last year. Aave’s decentralized governance concept attracted these large investors.
$AAVE Pro coming in July.
For those that didn’t attend the “NExt Steps in Institutional Defi” Zoom with Stani, here’s a recap email I received. pic.twitter.com/ClwlBkXh2r
— Noah Goldberg (@TraderNoah) July 4, 2021
Aave stated at the time that the funding would assist the company grow its presence in the Asian market. “Aave received funds from strategic investors to take DeFi closer to institutional use and to increase the team size to suit the development in Asian markets,” said Aave CEO Stani Kulechov.
The Aave Protocol’s native coin has dropped over 50% since its all-time peak in May. AAVE has a market worth of $3.49 billion and is now trading at $272.35.On year-to-date basis, AAVE is still selling at a 200% premium.