Back in May, we saw some strange tweets about AAVE being associated with the word KYC. Initially, everyone was puzzled, but soon after Stani Kulechov, the founder of AAVE, confirmed that the platform is 100% free of any KYC and that the leak was referring to a new platform, designed for institutional investments. The bombshell, which was just a rumour, seems to have finally been made official thanks to the tweet you can see below this paragraph which reveals some news about the launch of AAVE Pro, i.e. the AAVE product designed solely for institutional investors who will obviously have to pass KYC before they can use this new platform!
Aave PRO – How it will work
As already mentioned, AAVE Pro will collaborate with an external company in order to manage the Know Your Customer of its clients: Fireblocks. This way Aave will be able to guarantee that all investors will be in compliance and there will be no malpractices such as money laundering and so on. Fireblocks will also be in charge of enforcing all European AML (Anti-Money Laundering) laws. All this was discussed in the webinar available on youtube at this link in which both Stani Kulechov (AAVE) and Michael Shaulov (founder of Fireblocks) participated. To make things more interesting there was also Mike Novogratz, a legend in the crypto world. We will now do a little recap of what they said and how the new platform for institutions powered by AAVE should work.
- AAVE Pro will use V2 contracts with several audits to ensure security;
- AAVE Pro will only be usable by users who complete KYC with Fireblocks;
- To begin with, there will only be 4 assets available, namely BTC, ETH, AAVE and USDC;
- AAVE Pro liquidity will be segregated from the AAVE liquidity pools already in the market;
- AAVE Pro will comply with all AML practices with the help of Fireblocks;
- AAVE Pro will become decentralized, just like the platform we all already use!
The most important point in our opinion is the assets available. Based on this decision we can understand some very important things, namely that BITCOIN and ETH are the most interesting cryptocurrencies in the eyes of investors and therefore the ones with the most liquidity and that USDC is gaining momentum to the detriment of USDT, so it will not be impossible to see them on par in the years to come. And of course, AAVE is a very valuable asset as the technology behind the token is immense and could be the institutional bridge we have all been waiting for. We will have to see what happens when the regulator arrives, but we think AAVE is doing a great job and should not have any problems in the future.
After this ‘test’ of AAVE PRO which will be launched already at the end of this month, we are sure that DeFi will become even bigger and many other projects will try to do the same, working hard to bring new investments and to create attractive platforms for big investors. It was clear that DeFi is only in its infancy, but now we can say it with certainty. Shall we bet that the Total Value Locked in DeFi will exceed $1 trillion in less than 2 years?