The amount of funds in the DeFi protocol …

The amount of funds in the DeFi protocol …

UMA overtakes Yearn.Finance as the biggest ‘DeFi’ protocol on Ethereum


Aave DeFi Protocol Funds Grow 100% In Two Weeks

  • Since the beginning of the month, the amount of funds blocked in the Aave DeFi protocol has grown by more than 170%

  • Credit Protocol has recently expanded its functionality and continues to work on new features

  • Since the beginning of the year, the LEND protocol token has risen in price by 3900%

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Functional update attracted new users to the Aave DeFi platform and triggered a powerful capital inflow of up to $ 1.3 billion

Since the beginning of August, the total amount of funds (TVL, total value locked) locked in the project’s smart contracts has increased by more than 170% and exceeded $ 1.3 billion. What’s more, according to DeFi Pulse, the figure has doubled in the past two weeks. The reason for the growth was the announcement of the launch of a new test network for the Aavenomics protocol management, as well as the emergence of credit delegation capabilities on the platform.

Unlike many other stellar DeFi protocols, Aave doesn’t have a liquidity mining feature. But this does not prevent the project from gaining popularity among users..

Supernova DeFi Industry

The Aave project was launched in January 2020, evolving from EthLend, which in turn raised nearly $ 18 million in an initial coin offering (ICO) in 2017. In eight months, the project has developed into a leading platform with a wide range of different DeFi services, including crypto loans at fixed and floating interest rates and instant loans. The latter are very popular among arbitrage enthusiasts, since they give borrowers access to liquidity for hundreds of thousands of dollars in one ETH block (for about 15 seconds).

The amount of funds in the DeFi protocol ...

In addition, there is great interest in the credit delegation feature, which allows registered members to borrow loans using third-party assets as collateral. Its popularity skyrocketed when DeversiFi, a decentralized crypto exchange, borrowed more than $ 200K in Wrapped Bitcoin against collateral provided by Aave users..

Core features helped Aave raise over $ 100 million in its first six months. Then, in just two months, this amount increased tenfold and exceeded $ 1 billion..

The fun is just beginning

More recently, the creators of the project announced the final stage of testing “Aavenomics”, a system for decentralized protocol management. After the launch of Aavenomics, existing Aave protocol tokens will be converted to AAVE at a 100: 1 ratio, and their holders can use them as insurance against potential losses on the side of the liquidity provider. In addition, AAVE holders will be able to participate in decision-making regarding the operation of the protocol and receive a percentage of commissions on the platform..

In August, Aave announced the launch of Aave V2. The second version of the platform is currently at the stage of auditing smart contracts. It will support margin trading and voice delegation. Moreover, borrowers and lenders will be able to swap tokens used as collateral for debt positions..

LEND breaks records

The amount of funds in the DeFi protocol ...

The innovations and frenzied popularity of the Aave platform gave impetus to the dizzying growth of the native LEND token, which has risen in price by more than 3900% since the beginning of the year. After the project announced plans to add mining liquidity, token As the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible like voices. Two … More has risen in price by 30% in a matter of minutes. At the time of this writing, LEND is trading at $ 0.76, while just over the past day, the price has increased by more than 30%.

LEND chart. Source: CoinMarketCap

The popularity of DeFi protocols continues to gain momentum, and with it interest in the Aave platform grows. The new functionality will attract users and further increase the price of the LEND token in the long term. Now the project is ranked 24th in the CoinMarketCap rating, and its market capitalization is $ 940 million. For a short time, the indicator rose above $ 1 billion.


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