Aave declared a kick-off of its new project this month to meet the abruptly growing demand from different institutions. According to their announcement, Aave, one of the leading DeFi money markets, will launch a permission payment platform for investors.
The DeFi protocol is partnering with Fireblocks, a crypto service provider and custodian, to launch the new platform.
TraderNoah, a Twitter user, on June 4, 2021, revealed a screenshot of an email they supposedly got from a Blockworks webinar.
$AAVE Pro coming in July.
For those that didn’t attend the “NExt Steps in Institutional Defi” Zoom with Stani, here’s a recap email I received. pic.twitter.com/ClwlBkXh2r
— Noah Goldberg (@TraderNoah) July 4, 2021
The webinar titled ‘Next Steps in Institutional DeFi’ featuring Stani Kulechov, the CEO and founder of Aave.
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Also in attendance were Michael Shaulov, Fireblocks co-founder and CEO, and Mike Novogratz, Galaxy Digital CEO.
The email and the conference both confirm plans for the launching of ‘Aave Pro,’ Aave’s institutional product, in July. This move is to provide the solution to the numerous demands from institutions.
What Aave Pro Partnership with Fireblocks Will Facilitate?
Aave Pro launch is meant to support only four digital assets, namely; AAVE, BTC, USDC, and ETH. In its operations, there’ll be segregation of Aave Pro’s pool from other Aave’s deployments.
The platform’s V2 smart contracts get an added whitelisting layer. This addition enables certain institutions, fintech, and corporates to get access to Aave Pro.
The accessibility is regulated by the KYC (Know Your Customer) verification from Fireblocks. Also, Fireblocks will oversee anti-fraud and anti-money laundering for Ethereum-Based protocol.
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There’s also a future plan of decentralizing governance from an email. Recall that Kulechov first mentioned in May the plan of creating a permission pool for institutions. The lending pool is to inculcate both anti-money laundering restrictions and KYC compliance.
According to the operations of the pool, users will first complete a Know Your Customer verification from the partner, Fireblocks.
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The new platform is meant to bring collaborative learning in both decentralized and centralized finance. Currently, the combination of the DeFi token, 3 deployments give a total value locked of about $17 billion.
Twitter Community Responds Back With Mixed Reactions
There are mixed reactions from the screenshot on crypto Twitter. Some people outline the great opportunities for institutions to engage in DeFi using the new platform. Others are quite skeptical about the Fireblocks’ partnership with the DeFi token.
What people have yet to appreciate about Aave and Compound’s institutional products is that having doxxed institutional clients gives them an easy way to move into undercollateralized lending and credit markets.
— Noah Goldberg (@TraderNoah) July 4, 2021
The reason for this latter group is the recent lawsuit against the firm filed by StakeHound, a staking provider. The lawsuit is on for allegedly deleting private keys to a wallet that has about $72 million worth of ETH.
If Fireblocks is the one doing all the KYC, why do they need a separate pool that is supposedly being governed by anon $AAVE governors?
Btw, Fireblocks 🤡 recently lost 72m in ETH and is being sued now. pic.twitter.com/M8o3n7qJdI
— DefiMoon (@DefiMoon) July 5, 2021
Aave Pro is not the first project from Fireblocks. There have been several such projects from Fireblocks created to assist institutional capital in accessing decentralized finance seamlessly.
Their move was to create a bridge for institutional investors to access decentralized finance. In early 2020, Fireblocks had partnered with Compound in launching some services to assist institutional investors.
The project was to eliminate some of the challenges associated with the storage of private keys in browse while using a wallet.
This procedure will not be favorable for an institution that has multiple users as members. Thus, Fireblocks made a bridge by putting governance in operation.
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