Victor Ugochukwu · Dec 14, 2020 . 5min read
DeFi Protocol AAVE introduces Centrifuge to launch real-world assets
With the release of Aave governance on mainnet, DeFi protocol Aave introduces Centrifuge to inject real- world asset markets in the protocol.
By Komal Joshi · Oct 8, 2020 . 5min read
Aave has announced that it is introducing Centrifuge, striving to bring real-world asset markets to the Aave protocol. Aave is an open-source and non-custodial decentralized finance (DeFi) protocol for earning interest on digital asset deposits while also borrowing assets.
Real-world assets stabilize the highly volatile market. It helps to broaden risk and is the promenade to move DeFi surpassing its niche status. Notwithstanding the accelerated development of DeFi, the on-chain lending ecosystem is only just beginning to develop. Extending decentralized credit lines to present businesses efficiently has been an unsolved puzzle in the DeFi ecosystem. This is when Aave and Centrifuge come into the picture.
Aave supports diverse markets.
Aave supports various markets. This makes it simple for the Aave community to onboard real-world assets into the protocol. It enables financiers to opt into lending against these assets. However, Aave users can offer liquidity by depositing DAI and receive interest from a balanced collateral portfolio of various real-world assets. Moreover, AAVE token holders will govern the Centrifuge Real World Asset Market via the same governance processes as enduring markets live today.
Centrifuge finances real-world assets utilizing DeFi. The stack includes the Centrifuge Chain and the asset-backed financing DApp called Tinlake. The Centrifuge is in the DeFi space for funding RWA since 2018, and more than $2M of real-world assets have been financed via their Tinlake DApp.
Aave recently released its first governance Aave Improvement Proposal on mainnet. It is to migrate from the LEND token to the AAVE token. Recently, Aave, the decentralized money market protocol, smashed records as the community affirmed a large flash loan of $14 million worth of the DAI. On August 29, a user concluded about the Aave’s biggest flash loan of $14 million worth of DAI. To date, Aave has witnessed $300 million in flash loans. More than half of the total flash loans settled during August. However, in just a short period, the Aave protocol is in the limelight.
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