Aave to launch institutional-focused DeFi protocol

The Aave lending project will launch Aave Pro, a protocol aimed at professional market participants, in response to growing demand. The CEO Stani Kulechov announced this at the webinar Next Steps in Institutional DeFi.

Following the webinar, attendees received an email outlining Aave Pro’s key features, with the launch planned for July 2021.

the last . is most interesting https://t.co/v5EMVY3ldd

— stani.eth rAAVE 👻 =(⬤_⬤)= 👻 🦇🔊 (@StaniKulechov) July 4, 2021

In the initial phase, the new protocol will support four assets — Bitcoin, Ethereum, Aave, and USD Coin (USDC) — and offer clients the same services as the main project. Its pools will be separated from other liquidity sources.

Access will be granted to “institutions, corporations and fintech firms” that have passed Fireblocks’ KYC procedures. For this, Aave V2 will integrate “whitelists.”

The blockchain startup will also implement measures to combat money laundering and fraudulent practices.

In the future, the institutional protocol will move to decentralized governance.

The Blockworks portal event focused on the prospects for the DeFi industry and the barriers to adoption of new tools by professional players in traditional markets. It also featured Galaxy Digital CEO Mike Novogratz and Fireblocks cofounder Michael Shaulov.

Following the announcement, the community split into two camps. Advocates noted that Aave Pro would give financial institutions deeper engagement with the DeFi ecosystem.

Others recalled StakeHound’s lawsuit against Fireblocks. It accused the blockchain startup of losing 38,178 ETH as a result of losing the private keys to digital wallets.

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

In late June, Compound Labs, the company behind the eponymous lending project, opened a subsidiary, Compound Treasury. It provides neobanks and other financial institutions with access to the DeFi ecosystem.

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