On the back of yesterday’s announcement of Aavenomics, Aave is continuing to ship at a lightning pace with the release of a variety of new protocol integrations.
?????New features and listings on the menu this week?????
?? $ENJ and $REN now supported in the Aave Market @enjin @renprotocol
?? $SNX collateral enabled
?? $LEND listed on @loopringorg
??Fiat to Yield onramp for all tokens in Aave by @transak_finance https://t.co/R8QBotLTVi
— Aave (@AaveAave) July 16, 2020
In today’s post, Aave outlined a suite of new additions including a fiat onramp, new assets, and updated risk parameters for lending and borrowing from DeFi’s most diverse capital pool.
REN & ENJ Support
Aave’s support for both REN & ENJ comes as the first trusted lending platform to supply or borrow two of crypto’s hottest rising projects.
For those who missed our extensive coverage of Ren Protocol, the cross-chain interoperability platform has been seeding a tremendous amount of Ethereum-based Bitcoin through the advent of renBTC. With trials like the sBTC Curvepool, REN tokenholders (dubiously called the Ren Army) have propelled the token to new all-time highs in the midst of a rapidly growing ecosystem. Now, REN will enjoy a liquid market to earn interest or borrow using any of Aave’s 20+ supported assets featuring a 50% LTV, 65% liquidation threshold, and 10% liquidation bonus.
Flipping over the gaming world, Enjin has been making strong headway with the full release of its NFT-creation protocol earlier this year. For those unfamiliar with Enjin, the project popularized the ERC1155 token standard, making it easier for game developers to mass create batched NFTs with varying rarities. The protocol is fueled by ENJ which is posted as a bond against asset creation, all of which has propelled the token to strong growth in the past year. Just as with REN, this listing comes as the first major place to earn a return on ENJ along with 55% LTV, 65% liquidation threshold, and 10% liquidation bonus.
Risk Parameter Update
Given the recent rise of DeFi tokens, Aave’s market risk parameters saw a suite of updates to keep in line with changing demand. The expectation is that these grades will be upgraded regularly to stay on track with market sentiment – giving lenders and borrows fair LTV’s and risks as asset demand rises and falls. Here’s a look at the updated grading for all of Aave’s currently supported assets. In particular, the upgrade gives LEND an increased LTV of 50% and SNX an LTV of 15%.
Fiat Onramps
Perhaps the most exciting aspect of this release is the introduction of fiat onramps. Aave is partnering with Conensys to integrate Transak – a new onramp that allows for one-click access to Aave’s 20+ DeFi tokens. As if that wasn’t exciting enough, Transak will also allow users to go directly from fiat to aTokens, giving them a fiat to yield farming experience rivaling leading products like Dharma.
While the onramp will require users to undergo KYC to access, this premise of seamless DeFi onboarding is one that gives Aave a leg up over competitors like Compound. Now, it will be interesting to see if users find the feature desirable enough to get their feet wet with DeFi’s fastest-growing sector.
Aave Ships
Outside of the above-mentioned features, LEND will also be listed on Loopring – giving users access to a Layer 2 exchange with little to no transaction fees and instant settlement. All in all, the release showcases that even with major protocol upgrades in the queue, the team continues to expand on its strong foundation to showcase why it’s been the talk of the town in the past week.
If you’ve yet to check out Aave, there’s now an endless number of ways to do so, many of which will become even more attractive with the upcoming Aavenomics protocol upgrade.
To stay up with Aave, be sure to follow them on Twitter or join the conversation on Discord.
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Cooper is the Editor of DeFi Rate and a contributor to leading DeFi outlets like the Defiant and Bankless. He is active in the DAO ecosystem through projects like MetaCartel and Raid Guild where he seeks to incubate governance models and grassroots community development. He is an ambassador of Set Protocol and the Director of Fitzner Blockchain Consulting where he authors a weekly publication called Token Tuesdays. To stay up with Cooper, follow him on Twitter.
