As an early investor and contributor, Stake Capital is proud to see the continued progress and innovation coming from Aave Protocol.
Aave is leading the way in the decentralised lending market; the market cap of their LEND token increased by over 10,000% in the past 12 months, and has recently crossed the $500 million mark for the first time.
This growth is backed by an increase in users, who come to Aave for the range of features offered, such as flash loans, yield farming, and credit delegation.
The founder of Aave, Stani Kulechov, stated that
“credit delegation allows Aave to scale DeFi into financial debt markets world wide”[1],
as the overall narrative for DeFi will expand from depositing, to also sourcing capital.
The upcoming “Aavenomics” migration will increase the appeal of Aave, as a staking model will be introduced along with rewards for liquidity providers, and governance rights for token holders. Aavenomics seeks to reward those bearing the highest risks with the largest incentives.
This staking model will not only provide yield to the token holder, but also serve to strengthen the entire protocol via the Safety Module. Users will be rewarded with safety incentives for securing the network by staking AAVE or AAVE/ETH to an 80/20 balancer pool.
As part of the migration, the LEND token will become AAVE, at a ratio of 100 LEND to 1 AAVE. Aave Improvement Protocols (AIP) will put token holders in control of how the protocol is operated, as all policies will have to be passed via an AIP.
Aave’s partnership with Transak and the RAMP Network allows for a smooth fiat to crypto payment gateway, which will facilitate further growth by providing smooth onboarding for those looking to build a decentralised savings account.
The RAMP Network provides a decentralised fiat gateway to Aave, allowing users to convert fiat to crypto with low fees.
In addition to these partnerships, projects such as DeFi Saver are showing recognition for Aave as a leading figure in the industry by building tools to further help users monitor their Aave portfolio.
Aave V2 has just been released, adding even more features to the protocol, and continuing to push the limits of what is possible with decentralised finance.
Stake Capital chose to invest in Aave at an early stage, as we aim to be one of the leading service providers of the emerging digital economy.
Aave shares our vision of decentralised financial services, and we look forward to working closely with them in the future.
Further reading on Aave can be found in their whitepaper, or in their Aavenomics library.