Aave Pro: ‘Institutional DeFi’ Coming Later In July – AAVE Price Jumps
Aave announced the start of its latest project this month to meet the fast growing demand from different institutions. Aave, one of the leading DeFi money markets, will launch a permission payment platform for investors.
Aave is forming a partnership with Fireblocks, a crypto service provider and custodian, to launch the new platform.
Twitter user TraderNoah revealed a screenshot of an email from a Blockworks webinar.
The webinar that was titled ‘Next Steps in Institutional DeFi’ featured Stani Kulechov, the CEO and founder of Aave.
Michael Shaulov, Fireblocks co-founder and CEO, and Mike Novogratz, Galaxy Digital CEO, also attended.
The email and the conference both confirm plans for the launching of ‘Aave Pro,’ Aave’s new institutional product, later in July, providing the solution to the numerous demands from institutions.
Aave Pro Partnership with Fireblocks
Aave Pro launch aims to provide support only to four digital assets; AAVE, BTC, USDC, and ETH. Aave Pro’s pool will be separate operation from other Aave’s deployments.
The platform’s V2 smart contracts get an added whitelisting layer, which enables certain institutions, fintech, and corporates to get access to Aave Pro.
Fireblocks will be in charge of the KYC (Know Your Customer) verification for on-boarding. In addition, Fireblocks will oversee anti-fraud and anti-money laundering for Ethereum-Based protocol.
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.
The new Aave Pro platform aims to provide 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’s Mixed Reactions
Twitter community took the news with mixed feelings. Some 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.
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?
Fireblocks have been involved in several projects to assist institutional capital in accessing decentralized finance seamlessly with the aim to create a bridge for institutional investors to access decentralized finance.
In early 2020, Fireblocks partnered with Compound to launch some services to assist institutional investors.
The project was to remove some of the barriers associated with the storage of private keys in browse while using a wallet.
