AAVE and its place as the dominant DeFi protocol


AAVE is the dominant DeFi lending protocol with a Total Value Locked (TVL) of $17 billion in tokens. 

After the 2020 summer of DeFi, the Total Value Locked of DeFi projects boosted from a mere $1 billion to $88 billion. The present value is $54 billion, with the additional problem of protocols challenging market dominant.

AAVE was the dominant non-custodial liquidity procedure with a lending significance locked of $10 billion. In addition, AAVE was on the point of improving its market-leading through dual-chain integrations.

The development of DeFi into their plot has resulted in centralized institutions allowing access for tokens having members interact with their networks. Thus, AAVE’s significance as the dominant open-source lending strategy appropriates itself to the main market. 

Moreover, a recent Twitter survey by Revolut featured 61.6% of the responders who speculated AAVE would be accessible in apps trading platforms. Also, Blockchain, digital wallet, and trading outlet included AAVE in their firm, enabling users to benefit from 8%API interest on their amount deposits. 

Besides, SwissSygnum Bank delivers institutional-grade investors primary admission to decentralized applications. AAVE, Uniswap,  1inch are among the tokens operating under the DeFi. Moreover, Stani Kulechov, AAVE’s CEO, noted that institutional allegiance changes bring it easier for consumers to onboard the digital property ecosystem. 

AAVE redirects from their native Ethereum platform by combining with Polygon to make DeFi more easily accessible to users by decreasing transaction costs. AAVE’s Marc Zeller stated that $20-$30 fees for deposits are not okay for regular consumers. Besides, layer two fees, which amount to $5, are unsustainable. 

The DeFi summer of 2020 was both beneficial and problematic for AAVE and other DeFi platforms. Combining with Polygon made DeFi interactions more cost-efficient, as it aided in developing the ecosystem’s value. 

Moreover, RabbitHole acquired a $50,000 grant from the AAVE DAO to stimulate users to make deposits on the Polygon network. Additionally, the incentive offers participants rewards valuing $40,000, and an NFT has the scope of developing ecosystem adoption. As argued by Mark Cuban, DeFi aims to increase profitability for both developers as well as users.


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