DeFi ‘Monster’ Aave is Ready for the Next Phase of Adoption
DeFi assets are back to uptrending as Bitcoin and ETH continue to explode higher. The total value locked in decentralized finance is also rising, reaching $14.2 billion.
Market participants are excited by the latest developments put out by DeFi heartthrob Andre Cronje, the creator of Yearn.Finance who is constantly putting out collaborations with more and more DeFi projects. Cronje shared,
“I have so much more planned for when v2 launches, custom money markets (yield & insurance), Cream will be a lending reserve into Aave, agnostic Cover for all aTokens, and we can finally put ytrade, yleverage, and leveraged stable coins into production.”
This has been in response to Aave founder and CEO Stani Kulechov’s tweet where he shared that the popular DeFi project has already been working with Cronje since the beginning of this year. Kulechov added,
“The recent collaborations with @iearnfinance are IMO positive sign for DeFi. All DeFi protocols should work towards cross composability.”
Intra collateral swaps are a sorely missed building block. This is an important step forward for credit swaps as well as building smarter hedging products. https://t.co/21m3TVRofu
— Andre Cronje (@AndreCronjeTech) November 29, 2020
Not just this, the project has also achieved a big milestone in the form of processing over $1 billion in flash loans since launching in January.
All of this certainly got the community excited, and AAVE jumped over $76.5, up nearly 170% from about $28 earlier this month.
To trader @SmartContracter, AAVE is a “monster,” which he believes is “going to blow BTC out of the water in terms of performance in 2021.”
Next Phase for DeFi
Another news came in the form of Copper, an institutional custody provider announcing the launch of CopperConnect, the first-ever DeFi tool for crypto institutions.
With this service's help, an institution can effectively contribute to a decentralized pool of assets and earn passive income on that.
With unaudited DeFi projects decreasing, the fluctuation in the value of the market has been less dramatic, making the risk now more manageable for sensations, which as a result has “led to high demand from institutional crypto investors for secure ways to gain exposure to the DeFi marketplace.”
— SpartanBlack (@SpartanBlack_1) November 28, 2020
“In recent months, we have seen a significant increase in the number of institutions looking to deposit liquidity onto our project. However, to date, institutions have not had the tools available to comply with their exacting risk management rules,” said Kulechov.
To satisfy this demand, Copper provides the safety of assets throughout the DeFi lifecycle, which will help the AAVE project gain institutional adoption.