Aave To Introduce Permissioned Deployment for Institutions Later In July
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.
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 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.
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?
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.