Multichain DeFi market Aave offers institutional lending and liquidity services via Aave Arc.
Related: Now Aave Governance Belongs to Token Holders
The service lets enterprises be a part of regulation-compliant decentralized products. Via the liquidity pool, they can supply and borrow assets.Aave Arc is built especially for establishments to deliver regulatory compliance in the DeFi field. Aave Arc’s participants need to complete KYC and AML verification. The service was brought out on Jan. 5 with digital asset custody provider Fireblocks as it was the 1st in the whitelist. Aave revealed the plans for the service was in July 2021.
Initially, there were 30 companies in the whitelist to take part in Aave Arc. Among them are digital assets banking platform SEBA Bank, lending platform Celsius, Galaxy Digital-owned liquidity provider Bluefire Capital, and others.
Aave Arc is governed by Aave governance, which decides on appointing or removing institutions via the process called Aave Request for Comments.As per data from the DeFi analytics and rankings platform DeFi Pulse, Aave is the fourth largest decentralized finance protocol with over $11 bln total value locked. The protocol was launched in January, 2020.
Aave is running on Ethereum, Polygon, and Avalanche. Its native crypto AAVE currently trades at around $219 and has a market cap of around $3 bln. Overall TVL in DeFi currently stands at over $95 bln.