The central theses
- Despite the devastating crash in March, Aave has risen in the rankings of the most famous DeFi projects.
- Since integrating Tether’s stablecoin, users have locked more than $ 7.2 million in Aave.
- This rate hike results from the unique capabilities of flash loans, as well as competitive, non-custody rates on USDt loans.
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Although activity in the The DeFi storage space has decreased Since reaching $ 1 billion in March, the Flash lending platform has been Aave continues to see new users. Aave’s success also has a lot to do with its inclusion Tether (USDt), the most liquid stablecoin on the market.
High returns at Tether
Since its inception earlier this year, Aave has established itself as one of the most promising new DeFi projects. The most notable feature is the so-called “flash loan”.
These tools allow users to borrow without the need for collateral and only if the credit can be settled within the same transaction. Although the innovation was used in one handful of attacksFlash loans are unique in the crypto space.
Flash loans on Ethereum Open Finance / DeFi will not allow you to take out risk loans for hundreds of thousands of dollars for arb opps instantly – all in one TX / block.
With traditional CeFi, I can’t even send $ 100 from my stationary bank to online savings in less than 2-3 days. 🤦♂️
– DCinvestor.eth | aftab.eth (@iamDCinvestor) February 21, 2020
However, interest in the platform has continued to grow. Since the March crash when Bitcoin fell more than 40% and liquidated many Maker usersAave has thrived. At press time, Aave has more than $ 56 million on record.
This success can also be attributed to for the integration of top stablecoins such as USDt, BUSD, TUSD and Circle’s USDC. Of these four, however, Tether leads the pack with $ 7.2 million in liquidity.
That interest is likely due to the competitive returns users enjoy on borrowing their digital assets with Aave.
Source: DeFi Pulse
The CEO of the project, Stani Kulechov, said:
“No other stablecoin in the DeFi loan market has grown as fast as USDt. Since the start of USDt at Aave, our depositors have received the highest average return on stablecoins with USDt. “
According to Aave, users have earned an average of 6.26% over the past 30 days. It is critical that the locked cable is not kept. There are no gatekeepers or third parties managing users’ tokens.
Researching the wider DeFi range, the Ethereum-based USDt finds plenty of users looking for a fluid and reliable stable coin.
Reports even have specified that stablecoins such as Tether on Ethereum have greater liquidity than even the network’s native asset, ETH.
“The growing popularity of USDt is quickly making it the stable coin of choice on all DeFi platforms. As the use of USDt for myriad purposes increases, the world’s most trusted, stable, and liquid stable coin solidifies its central position in the digital asset ecosystem. Tether is the reserve currency of Crypto and DeFi, ”said Paolo Ardoino, CTO of Tether.
As with many experiments in financial engineering, flash loans and undocumented earning platforms are just the tip of the iceberg. By incorporating these tools into existing trading and hedging strategies, original ideas are uncovered that are not possible in traditional finance.
This message was brought to you by Phemex, our preferred derivatives partner.
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