Aave’s Proposal for Centralized Lending on Kraken’s Ink Blockchain Gains Approval
- Aave’s request for comment (ARFC) to deploy a centralized version of its service received a vote approval of 99.8% from the community.
- The proposal aims to expand Aave’s technology adoption and create new revenue streams through a partnership with Kraken’s Ink blockchain.
- The Aave DAO will receive at least a Reserve Factor of 5% based on borrow volume in all pools.
- The Ink Foundation has committed over $250 million in liquidity mining incentives for the new protocol.
- Aave’s total value locked (TVL) currently stands at approximately $33.5 billion, down from $40.3 billion earlier this year.
This proposal marks a significant step for Aave as it seeks to penetrate the institutional lending market while leveraging Kraken’s compliant layer-2 platform for tokenized assets and DeFi. The next phase involves drafting an Aave improvement proposal (AIP) for an on-chain vote.
With the backing of substantial liquidity incentives, Aave is poised to enhance its presence in the lending sector while its TVL has decreased, highlighting market dynamics.(Source)
