Key Takeaways
What’s Aave and Maple trying to achieve?
Smother on-chain liquidity and capital management for DeFi users and firms.
How does the plan work?
Aave will integrate Maple’s yield-bearing stablecoins for users to access higher rewards. In return, Maple will deploy Aave’s idle capital.
Top DeFi lending protocols, Aave [AAVE] and Maple Finance [SYRUP], have teamed up to scale the sector. In a statement, the duo said their “strategic partnership” will mark the “next era of DeFi.”
“The next era of DeFi starts today… Maple gives a new class of collateral to Aave: institutional-grade assets backed by consistent, trusted yield.”
Aave offers overcollateralized loans to everyday DeFi users and some firms. However, sometimes the demand fluctuates, and the rewards can be relatively low for depositors.
On the contrary, Maple only loans out to vetted institutions like market makers. The loans are undercollateralized, hence attracting higher rewards that could benefit some of Aave’s idle capital.
According to Sid Powell, CEO of Maple, the integration would help scale institutional adoption of DeFi. Powell noted,
“Aligning two of the industry’s most established protocols, this move lays the foundation for the next phase of sustainable growth in decentralized finance, where institutional capital and decentralized protocols work together at scale.”
Aave community approves the plan
For his part, Stanley Kulechov, Founder of Aave, said that the plan would help institutions “manage capital better.”
As part of the partnership, Maple’s yield-bearing stablecoins, sryupUSDT and
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Author: Benjamin Njiri
