Aave Protocol overtakes Maker with over $1.5 Billion locked

wizard from space -

As of writing the lending and borrowing platform, Aave has over $1.5 billion locked. The protocol has now surpassed Maker DAO in total-value-locked, who has long been holding DeFi’s number one spot. In fact, the amount of money locked up in Aave has doubled in the short span of two weeks.

Electronic Money License for DeFi Fiat Onramps

One reason why DeFi users are preferring to turn to the newer platform over Maker is that Aave is constantly adding new features. On August 24th, the team confirmed they now have an Electronic Money License (EMI) for its UK business entity. The license enables Aave to build fiat onboarding capabilities for its users within the UK. Only two other companies hold this type of license: Coinbase and Revolut. Meaning Aave is now part of the select few.

Why is this a big deal?

Aave will be using the license to pilot a new service, which will focus on making it easier to onboard new users into cryptocurrency. For example, users can buy stablecoins or other crypto assets directly with fiat using their bank cards. Which they can then use immediately in the Aave ecosystem. If the service works well then you can expect them to expand it into Europe and then globally. Essentially, Aave is cementing itself as the most rapidly-growing DeFi protocol of 2020.

As of writing the lending and borrowing platform, Aave has over $1.5 billion locked. The protocol has now surpassed Maker DAO in total-value-locked, who has long been holding DeFi’s number one spot. In fact, the amount of money locked up in Aave has doubled in the short span of two weeks.

The icing on the cake… the industry was already beyond excited after Aave revealed features of V2, namely, the gas optimizations and collateral trading. Now to hear there will be fiat onramps shows that the team is ready to continue pushing DeFi beyond its limits.

The future: Aave will soon go through a token swap from LEND to AAVE, which will also launch a new era of ecosystem incentives. Meaning users who help the protocol stay secure and grow will receive rewards. Long story short, Aave Protocol is not slowing down anytime soon.