Aave’s CeFi Proposal on Kraken’s Ink Advances to Next Phase: What’s Next?
Aave Proposes Centralized Lending Protocol on Kraken’s Ink blockchain
Community Approves Aave’s Centralized Initiative
Aave’s proposal to establish a centralized lending protocol on Kraken’s Ink blockchain has garnered significant support from the community. The request for comment (ARFC) regarding the deployment of a customized version of Aave v3 for the Ink Foundation received an overwhelming 99.8% approval from voters.
The ARFC serves as an initial offchain voting mechanism, paving the way for a subsequent onchain vote by the decentralized autonomous organization (DAO). The next step involves formulating an Aave improvement proposal (AIP) for onchain voting.
The ARFC emphasizes that licensing a centralized version of Aave’s codebase will enable the protocol to broaden its technological reach and generate new revenue opportunities.
Kraken’s Ink blockchain: A New Frontier
Launched in late 2024, Kraken’s Ink blockchain aims to provide a compliant layer-2 solution for tokenized assets and institutional decentralized finance (DeFi). This collaboration is seen as a strategic move for Aave to enhance its presence in the institutional lending sector, potentially creating additional revenue streams.
The Aave DAO is set to receive a share equivalent to a Reserve Factor of at least 5% based on the borrowing volume across all pools. Additionally, the Ink Foundation has pledged substantial resources to support the development of this new protocol, including several liquidity mining initiatives expected to inject over $250 million in initial supply.
Aave’s Growth and Market Position
This announcement comes on the heels of Aave achieving a total value locked (TVL) of $40.3 billion in mid-May. However, recent data from DefiLlama indicates that Aave’s TVL has since decreased to approximately $33.5 billion, placing it in second position behind Lido, which currently holds $34.3 billion in assets.
The ongoing developments reflect Aave’s commitment to innovation and growth within the DeFi landscape, as it seeks to adapt and thrive in an evolving market.
