ETHLend ends loan book in favor of Aave ‘Flash Loans’

The crypto-supported peer-to-peer platform ETHLend is no longer in operation just a few weeks after the introduction of the new flash loan function by the parent company Aave.

On the ETHLend website, visitors can no longer browse the marketplace or access funds.

“All good things come to an end. We are proud to say we started Aave. Aave is an easier and faster way to provide liquidity or borrow assets, ”the website says.

“ETHLend will only remain active for current users to close out loans.”

It does so just a few weeks after the official launch of the Aave protocol on the Ethereum blockchain on January 9, 2020, offering users instant access flash loans with no collateral required.

In a blog post, an Aave spokesperson stated that the tool was “designed for developers / people with technical knowledge” and is intended to enable risk-free lending that is supported by at least 16 types of cryptocurrencies.

“With Flash Loans, a bespoke smart contract can borrow assets from our reserve pools within a transaction, provided that the liquidity is returned to the pool before the transaction ends,” the spokesman said.

“If this does not happen, the transaction will be rolled back to effectively reverse the actions taken up to that point and to ensure the safety of the funds in the reserve pool.”

Aave was founded in September 2018 with the aim of filling the gaps that fintech companies like PayPal, Skrill and Coinbase are closing by introducing new products and services like Aave Pocket, Aave Lending (SaaS), Aave Gaming, Aave Custody and Aave have clearing.

The newly introduced Aave protocol has been described as a “decentralized, open-source, and non-custodial money market protocol” where depositors can earn interest by providing liquidity to the credit pools.

With ETHLend, borrowers could request loan amounts and deposit other digital currencies as collateral while paying interest on the loans. In its first month of operation, the company funded $ 2 million (£ 1.52 million) in loans.

ETHLend and Aave’s managing director, Stani Kulechov, was asked to comment.

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