10.7 C
Amsterdam
29 March 2024
PumpMoonshot
Image default
Altcoins

DeFi lending platform Aave reveals “private pool” for institutions

The banks are out of the bag: In a Tweet on Wednesday, Stani Kulechov, co-founder of decentralized finance money market protocol Aave, revealed that the Aave protocol has built a “private pool” for institutions to “practice” before getting involved with the DeFi ecosystem.

Earlier on Wednesday, a Twitter user posted an angry tweet directed at Aave’s official Twitter ac

count, noting that his address had been “blacklisted” due to Anti-Money Laundering requirements:

Kulechov himself responded to the tweet, saying first that there had been a mistake and that “The text is actually incorrect and relates to another pool we’re testing out,” before later revealing the clientele the pool was designed for:

In an interview with Cointelegraph, Aave’s head of institutional business development, Ajit Tripathi, confirmed that the protocol had designed a permissioned pool specifically for institutions and characterized the purpose of the pool as educational.

“It’s a great solution to promote collaborative learning across cefi and defi,” Tripathi said.

He noted that the private test pool is designed to be compliant with AML regulations and that all users would have to undergo Know Your Customer verification from relevant partners. Moreover, the pool could be coming to mainnet sooner rather than later:

“We are in advanced stages of development. Please watch this space for more information.”

While many AAVE tokenholders rejoiced at the news that institutional money may soon be flowing into the protocol, other users were more skeptical about what centralized institutions participating in DeFi might mean.

However, Tripathi noted that, much like DeFi itself, figuring out how institutions can participate in protocols remains an open-ended question.

“This is a space of innovation and learning for both cefi and defi. As I said, institutions, the defi community and the regulators are all excited about the promise defi holds in creating fairer, more efficient and more inclusive financial infrastructure for everyone and we are grateful to be able to contribute to that.”

News Source

Related posts

4 Reasons Why XMR May Become the Crypto of the Future

PumpMoonshot

Ripple CEO Claims Ether Surpassed XRP Because of SEC

PumpMoonshot

Ethereum Breaks New Record Amid 13% Rally, Options OI Reaches $7 Billion

PumpMoonshot
Verified by MonsterInsights