The Aave team has been hard at work to provide new features and assets in the protocol for the Aave Fam!
As always, synergies within the ecosystem and brand new functionalities are on the menu this week.
We’re happy to introduce new risk parameters giving more freedom to users, new assets listed, the listing of LEND on Loopring, and a brand new fiat onramp for a seamless Fiat to Yield experience.
New Asset Listings
Aave is the DeFi platform offering the most assets of the ecosystem. We think that the communities of projects that keep on delivering and building are an important part of the Ethereum ecosystem, and they should be able to access decentralized financial services. The safety of our users is and will always be our top priority, and that is why after careful consideration from our Risk and Engineering teams, we’re announcing the addition of two new assets into the main Aave Market.
Enjin & Aave have a long-lasting successful relationship. Enjin was one of the first adopters of ETHLend, the first protocol of Aave, and we are excited to work together on subjects such as the interaction between gaming, NFTs and DeFi. Supporting ENJ in the Aave Protocol is the first step in this direction.
Enjin aims to connect virtual worlds by empowering the management, minting and trading of blockchain assets. Enjin coin is the utility token of the platform and can be used to mint new digital assets in their ERC-1555 standard. As a decentralized protocol offering some open-source and permissionless products (wallet, marketplace, token minting). The Enjin community is large and active, with over 50,000 holders.
ENJ has a $200 million market capitalization and a decent amount of liquidity in reputable marketplaces. Actively traded since October 2017 with nearly a million transactions to date, Enjin has grown a lot in 2020, leading to high volatility in the price of the token.
As of today, you can use ENJ as collateral in Aave. With a Market Risk score of C+, we are listing ENJ with 55% LTV, 65% liquidation threshold, and 10% liquidation bonus. Further information can be found in the Glossary.
Aave is also the featured DApp in the Enjin Wallet’s DApp Browser, and you can deposit and borrow in Aave directly from the Enjin Wallet there.
Aave in the Enjin Wallet DApp Browser
At Aave, we’re impressed by the achievements of the REN Protocol team. renBTC is well suited to become an industry standard and is an asset under serious consideration for listing inside the Aave markets.
The REN team keeps on delivering, and they have an active community. Their blockchain bridges experience such as bridge.renproject.io and wbtc.cafe are seamless and we are considering it for a “BTC onramp” on our application.
With a Market Risk score of C+, Republic Token is listed with 50% LTV, 65% liquidation threshold, and 10% liquidation bonus.
Meet the current class of 19 aTokens, now including REN and ENJ
Risk Parameter Updates
When market conditions change, risks can change as well. Therefore, we are continuously monitoring the assets integrated into the protocol. The growth of the ecosystem impacts the risks through increased volatility but also improves asset liquidity. The risk documentation has been updated based on the latest market conditions as per the updated risk table below.
Asset Risk Map for the Aave Market
The liquidity of the LEND token has significantly increased and its market capitalization has been multiplied by 10. This means we can adapt our risk mitigation tools:
- Increase the Loan-To-Value ratio to 50% to allow more borrowing power to LEND holders using the Aave Protocol.
- Decrease the Liquidation Bonus to 10% due to increased liquidity
The Synthetix ecosystem has proven robust while offering new tools for its users.
We’re big fans of the new binary options provided by SNX!
SNX has some controlling functions and an imposed time out when the system upgrades. Still, the ecosystem has a strong community and a very forward-looking approach close to Aave.
We’re happy to see their ecosystem growth and the rise and increased stability of sUSD in the stablecoins market.
To further join our communities, SNX will be accepted as collateral with an LTV of 15% at the same level of collateralization of the Synthetix ecosystem.
LEND on Loopring
Loopring.io is an industry leader on zk-rollups and Layer 2 trading. With the current high transaction costs on Ethereum, Loopring services allow the traders to have an optimal alternative to centralized exchanges.
The Loopring team keeps on delivering and we’re happy to partner with them — LEND will be available today on ETH-LEND and USDT-LEND pairs to give our community another option to acquire LEND in a safe, affordable and accessible way.
It’s the beginning of a long-lasting relationship, and we will build more with Loopring in the future.
Introducing Fiat to Yield
DeFi is an incredible opportunity to build a “Decentralized savings account” where you can earn a passive income or leverage on market opportunities, on the condition that you already own crypto assets.
Acquiring our first crypto assets is an experience that has vastly improved over the years. However, we still think that discovering Aave, then having to create an account and wait days or even weeks on a wholly separated platform to come back with crypto assets, is a suboptimal experience.
With fair fees starting at 0.5%, Aave users will have the option to KYC and directly acquire all tokens listed on Aave without leaving the app in a matter of minutes with a debit card or within 1–2 business days with a wire transfer.
As a bonus, if you’re looking to deposit DAI, and LINK, with Transak you can directly purchase aDAI and aLINK representing direct deposits into the protocol, allowing a fiat to yield one-click operation.
This will be expanded to all the assets listed on Aave in the coming weeks.
Seamlessly convert fiat to crypto to yield in a single operation cleared in minutes
We can’t wait to welcome the Enjin and Ren communities into the Aave Fam and to collect your feedback on the new Fiat to Yield experience.
This week has been packed with exciting news for the Aave ecosystem. If you want to stay tuned and keep track of our frequent updates, feel free to follow us on Twitter and join us on our Discord server.
By Marc Zeller