Leading DeFi lending and borrowing protocol Aave announced a rebranding to its institutional-grade DeFi offering.
Aave Pro Rebrands to Aave Arc
Aave (AAVE) the top decentralized finance (DeFi) lending and borrowing protocol with more than $11 billion TVL recently announced the rebranding of its upcoming institutional platform from Aave Pro to Aave Arc, the platform’s CEO, Stani Kulechov confirmed.
Per sources close to the matter, the rebranding was largely done to convey the purpose that Aave functions as a gateway to bring institutions into the rapidly budding DeFi landscape.
Notably, Kuelchov told The Block that the platform will launch within weeks from now.
For the uninitiated, Aave allows token holders to deposit funds into liquidity pools for which they are compensated via liquidity mining or lucrative interest rates. This happens as other crypto token holders (borrowers) borrow funds from these liquidity pools and are required to pay the tokens back with a small interest.
In essence, Aave Arc is committed to providing institutional investors uninterrupted access to the DeFi industry without them being subject to stringent regulatory requirements. Specifically, Arc is speculated to offer private pools of funds where only KYC’d participants will be allowed to enter.
It is worthy of note that the yields generated in private pools could be different from the yields offered by general liquidity pools offered to the common users. However, Kulechov added that participants to both private and public pools could arbitrage the difference in yields thereby ensuring that private pools continue to maintain high-interest rates.
“I think the larger vision of the Aave Arc market is to create a more comfortable risk appetite for institutions to participate in decentralized finance before, for example, having the risk appetite to participate towards the permissionless decentralized finance, which is the bigger vision offering.”
Institutional Interest Continues to Pile into DeFi
Attracted by the lack of unnecessary procedural formalities and high-interest yields, an increasing number of institutional investors are steadily pivoting toward DeFi.
As previously reported by BTCManager, another DeFi platform Compound (COMP) had announced the launch of Compound Treasury geared toward institutions keen on enjoying the benefits of DeFi.
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