Aave deploys the DeFi protocol on the BNB Chain.
Decentralized financial (DeFi) platform Aave has deployed its money market protocol on the BNB Chain network as blockchain expands its DeFi ecosystem.
In an announcement sent to Cointelegraph, the BNB Chain team said Aave is joining the growing number of DeFi protocols on the BNB Chain. The lending protocol is joining the likes of Uniswap and PancakeSwap to grow the DeFi ecosystem on the blockchain network.
With the deployment of Aave on the BNB Chain, the network will have several DeFi lending protocols including Ambit Finance and Venus. Apart from this, BNB Chain currently has liquid staking protocols, LP tooling, perpetuals and decentralized exchanges (DEXs). According to the team, it may soon add blockchain protocols to the DeFi ecosystem.
BNB Chain's arrival of Aave on the network gives the BNB Chain community access to one of the industry's leading DeFi lending platforms. The integration allows Aave users to access the benefits of BNB Chain, such as lower fees. The team stated that Aave users will be able to access the liquidity of the FDUSD stablecoin, which is based on the BNB Chain.
In addition to these, the BNB Chain Core Development team said in a statement to Cointelegraph that BNB Chain developers can benefit from the new integration. “BNB Chain developers can now launch applications that build on Aave's liquidity, further expanding BNB Chain's DeFi capabilities.”
The BNB Chain team added that the integration complements the existing ecosystem by providing a lending platform for developers and decentralized applications (DApps). They say Ave is a “user app” that acts as a developer component for complex DeFi applications.
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Additionally, the BNB Chain community will also be exposed to new lending and borrowing options as Aave's DeFi platform launches on the network. Mark Zeller, founder of the Aave-Chan Initiative (ACI), said in a press release to Cointelegraph that they are excited to welcome FDUSD to Aave v3 and launch Aave on the BNB Smart Chain. Zeller explained:
“This integration opens up new opportunities for Aave users, and Aave DAO aims to become a key protocol in the BNB Chain ecosystem. We believe this addition will contribute to the overall growth and adoption of DeFi.”
Meanwhile, BNB Chain highlighted that Aave's integration is part of its efforts to drive mass adoption by targeting decentralized applications, including DeFi protocols. On January 31, BNB Chain published its market outlook, citing DeFi as one of its key targets for 2024. In addition to DeFi, the chain will focus on gaming, artificial intelligence (AI) and decentralization by adding active validators.
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