Aave Pro for Institutional Users
Aave Pro for Institutional Users
- Aave (a DeFi money market) announced at the end of June that it will launch a new product, Aave Pro. It will be a license-based version of the current Aave platform with a focus on institutional users. Going live is planned for July 2021.
- The new DeFi prodcut will be connected with the crypto custody provider Fireblocks from the US. On June 4th, Twitter user TraderNoah posted a screenshot (see below) of an email he is said to have received from Blockworks after a DeFi webinar. Aave founder and CEO Stani Kuletschow, Fireblocks CEO and co-founder Michael Schaulow and Galaxy Digital CEO Mike Novogratz also took part. It was announced that Aave Pro will be launched in July 2021 with a strong focus on institutional clients to get easy access to DeFi yields from lending, staking, etc.
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Aave’s product will attract sophisticated institutions that would like to take a more granular approach to defi lending activities. It will also open up the opportunity for pool arbitrage for institutions that operate in both pools.
— Noah Goldberg, July 2021
- How does the product work?
- In the first place, the product Aave Pro will support:
- BTC
- ETH
- AAVE
- and USC.
- These different pools are separated from the other Aave services. By using a white-listing logic Aave ensures that only identified and white-listed companies, institutions, and fintechs can get access. In this setup, the custody provider Fireblocks takes care of the KYC, anti-money laundering, and anti-fraud services. That means the whole product will be more centralized at the beginning, mid-term it will become more decentralized.
- The reaction of the community was mixed, as decentralization is very important for the ecosystem. Also, the connection to Fireblocks was received negatively, referring to an ongoing lawsuit against the company by the betting company StakeHound, as some private keys were deleted.
- Fireblocks is also working together with Compound (Lending platform) to bring easy access to DeFi yields and returns for professional/institutional investors.
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With the Aave Pro institutions get an easy access to DeFi returns.
- Screenshot of the Twitter post from TraderNoah (Noah Goldberg) about Aave Pro and the release date in July 2021.
- Read the full Twitter post of Aave Pro here. We will keep you updated regarding the Aave Pro for institutional users.
- Find more valuable information about DeFi Apps, DeFi Dashboards or Defi insights at DezentralizedFinance.com.
- RISK DISCLAIMER: All information presented above is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This article’s content solely reflects the opinion of the writer, who is not a financial advisor. Do your own research before you purchase cryptocurrencies. Any cryptocurrency can go down in value. Holding cryptocurrencies is risky.
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