Ave notes $1T in loan volume, industry first
Decentralized finance protocol Aave has surpassed $1 trillion in aggregate loan volume, the first historic mark in the DeFi industry.
“Ten years ago, Diffie and Ave did not exist. There were only ideas. Today, Aave stands as the backbone of on-chain lending, developing a new financial system that is open, global and unstoppable,” Stany Kulekov, CEO of Ave Labs, said on XPost on Wednesday.
This operation marks another step towards Aev's goal of becoming “the largest and most efficient liquid network in the world,” Kulekov added. “Builders, banks and fintechs will plug into default, fundamentally improving liquidity and cost structures in global finance.”
In August, Aave Labs launched Ave Horizon, a new lending marketplace on Ethereum specifically for stablecoin lending to traditional financial firms and other institutional investors.
VanEck, WisdomTree and Securitize were among the first participants to use Aave's institutional offering.
In the year On February 15, Kulekov said that DeFi lending could benefit from tokenization of “abundant assets” such as solar, energy storage batteries and robotics for labor. In the year By 2050, those assets are expected to be worth a total of $50 trillion.
Kulekov originally launched Ave as ETHLend in November 2017 before rebranding to Aave in September 2018. It now has more than $27.2 billion in total value locked in, allowing users to earn interest on deposits and borrow instantly using crypto as collateral.
Aave leads a number of prominent DeFi lending platforms at TVL, including Morpho, JustLend, SparkLend, Maple, Kamin Lend and Compound Finance, each of which has more than $1 billion in total value locked in.
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Ave generated over $83.3 million in payouts in the last 30 days, nearly four times that of its next closest competitor, Morpho.
The DAO proposal has created a divide in the Aave community.
Aave's milestone comes amid a protocol-wide dispute over how much funding and revenue control Aave Labs should receive from Aave, a decentralized independent organization.
Aave (AAVE) tokenholders are asked to approve a package worth up to $42.5 million in stablecoin and 75,000 AAVE for Aave Labs.
In return, Aave Labs transfers all revenue from Aave-branded products to the Aave DAO treasury under the DAO-supported operating model.
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