DeFi Platform Aave, Formally ETHLend, Adds USDT Support For Borrowing and Lending

Tether (USDT) has today became available on the non-custodial lending platform that used to be known as ETHLend and nowadays is named Aave.

By market cap, the USDT stablecoin seems to signal its move into the decentralized finance (DeFi) Ethereum (ETH). On March 10, Aave announced that it’s developing its USDRT offer of USDC, DAI, sUSD and TUSD stablecoins.

What Are Aave’s Plans for the Future?

The Aave platform allows its users to borrow and lend coins at a specified interest rate. It can be accessed only with an Ethereum account, even if it supports many options, the mobile and browser wallets included. When it comes to borrowing with Aave, this can be done either by flash loans or by providing a collateral. The first option doesn’t require any collateral, seeing the loan doesn’t exist in the eventuality of not being repaid.

Flash Loans Make Sense Only as Far as Trading Cryptocurrencies Goes

As Tether said, flash loans are great when it comes to taking advantage of liquidation opportunities and on-chain arbitrage, also when it comes to moving trading positions on DeFi platforms, which means they only make sense as far as trading cryptocurrencies goes. Their loan figures change according to the dynamics of the market. USDT had an APY rate of over 12% on Tuesday, soon after it has been launched on Aave.

The Risks Involved with DeFi

As far as the interest rates provided by DeFi in lending go, these seem very lucrative, especially if compared with the rest of the existing investment tools available. Governments from all over the world are brining interest rates below the inflation rate of 1 to 2%, whereas the stock market is showing more and more that it became exhausted. Strong yields indicate higher risks, especially since the most recent DeFi hacks involving flash loans have exposed the most important vulnerabilities in the crypto space.

Is USDT Used for Most DeFi Protocols?

Most DeFi protocols use the Maker (MKR) DAI that involves higher risks, even if its yield is high. In spite of the many controversies surrounding it, USDT has managed to stand the test of time as far as the DeFi protocols go. It has low interest rates because everyone trusts it and also because it has nothing to do with traditional finance.

Ethereum (ETH) Live Price

1 ETH/USD =$343.0773 change ~ 1.82%

Coin Market Cap

$38.64 Billion

24 Hour Volume

$4.89 Billion

24 Hour VWAP


24 Hour Change


Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Oana Ularu
Oana Ularu
Curious about what’s going on with all the money in the world, Oana is bringing you the latest news in the crypto world. She’s aware of the fact that you need to know everything that’s happening on the financial scene in order to play the cryptocurrency market, so you can count on her to share with you every little detail on what matters.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Over 100k Bitcoin Worth Nearly $1.2 Billion Tokenized on Ethereum; WBTC & RenBTC Leading

The number of Bitcoins locked on Ethereum continues to hit new records. It has already surpassed $1 billion. Currently, nearly $1.2 billion worth of Bitcoin...

China Should Seize the ‘First Mover' Advantages of Launching A CBDC: PBoC

China should aim at becoming the first country to issue digital currency as part of its efforts to internationalize the yuan and lessen its...

These 2 DeFi Forks Take a Harsh Beating As The Originals Reclaim Their Dominance

Up until the mid of last week, Curve clone Swerve was enjoying a record $942 million in deposits, or total value locked (TVL), as...

Biggest Banks Involved in Moving $2 Trillion Illicit Funds, Reveals FinCEN Documents

And they say bitcoin is used for criminal activities. The leaked documents of $2 trillion transactions, a tiny proportion of the SARs submitted over the...

Binance Launches the ‘Innovation Zone' to Justify DeFi FOMO Listings

Leading spot exchange Binance has created an “Innovation Zone” to list newer tokens. "The team has created the Innovation Zone, which will allow users to...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today