Aave’s path to a total value of over $ 11 billion is blocked

Although Aave launched in early 2020, it has seen significant growth in total deposits and daily deposits since the summer of 2020. Overall, Aave has added more than that Deposits of $ 45 billion, and in 2021 the log registered an average of Daily deposits of $ 231 million. More than 46,000 unique Ethereum users have become Aave lenders. with an average life deposit reaching USD 173,000.

The recent launch of Aave at Polygon and the launch of its liquidity program There followed a rapid increase in the total blocked value of $ 5.4 billion on April 25th to approximately $ 11.4 billion on May 12th according to Dapp radar data. Here’s a look at some of the previous uses of the protocol.

It should be noted that the average deposit is well above the average which is only USD 3,500. Comparing these figures makes it possible to know the portrait of the users of Aave: there is an important part of the lenders in Aave

Aave’s path to a total value of over $ 11 billion is blocked
Aave’s path to a total value of over $ 11 billion is blocked

However, Imagine if Elon Musk walked into a room he would get everyone to showcase billionaires. on average. Something similar occurs when whales with millions in their directions deviate from the average in Aave. However, the presence of whales in DeFi does not surprise anyone.

  • DeFi hacks on Binance Smart Chain increase as the locked value and volume increaseAave’s loans appear to be very volatile. Some days borrowed less than $ 10 million and others more than $ 400 million. The average in 2021 was USD 58 million per day. There were approximately 15,000 unique Ethereum borrowers on Aave with a total of 117,000 credit events recorded on the Ethereum blockchain, underscoring the fact that Aave users’ loans may be less in demand.

The breakdown of the most liquidated assets could help uncover the origins of Aave’s new liquidity runaway program. Most of the most liquidated assets, including Wrapped Ether (WETH), Ether (ETH), LINK and Wrapped Bitcoin (WBTC), They are volatile, which makes them more prone to liquidation.

The recently launched liquidity mining program will increase the annual percentage return on deposits for a wide variety of digital assets. including USD Coin (USDC), ETH and WBTC, which are set to help Aave catch up with its main competitor Compound.

However, Program awards are assigned differently to lenders and borrowers based on the underlying asset. as Aave is looking for a means to help users reduce the risk of liquidation.

To encourage the use of stablecoin, Aave distributes the rewards to stablecoin lenders and borrowers alike. For riskier assets like WBTC and ETH, borrowers only get 5% of the premiums. This two-way approach is designed to help Aave eliminate risky credit.

Certain SHORTCUT, one of the most popular assets in Aave, It was not included in the liquidity mining program at all, which led to comments from the Aave community:

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The facts and the numbers

As with other trends driving the sector, venture capital activity in the blockchain space reached a new milestone when Paxos and Bitso raised more than $ 250 millionIn the last two weeks. In total, the five largest funding rounds in 2021 contributed more than $ 1.5 billion to the sector.

The ecosystem for cryptocurrency investment products is developing rapidly. New products are designed to give investors the opportunity to engage with companies related to cryptocurrencies and native Polkadot tokens. Traditional cryptocurrency investment vehicles also saw growth when the Chicago Mercantile Exchange launched a new bitcoin micro-futures contract. However, one key product remains in the balance, because it takes the SEC another 45 days to review an exchange-traded Bitcoin fund application from VanEck.

Two mutual funds will soon drive the development of the world of cryptocurrencies. because Andreessen Horowitz wants to raise up to USD 1 billion to invest in cryptocurrencies, and the $ 165 million venture capital fund Bitkraft Ventures confirms it takes crypto investing seriously through a partnership with Delphi Digital.

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