Aave remains the largest protocol in the DeFi lending sector. Currently, it has $27.2 billion locked. Over the past 30 days, the platform earned $83.3 million in fees. That is almost four times more than its nearest competitor.
The total loan volume on Aave has exceeded $1 trillion. This is the first such result for the DeFi market.
“Ten years ago, there was no DeFi or Aave. These were just ideas. Today, Aave has become the foundation of on-chain lending and supports a new financial system that is open, global, and unstoppable,” said Aave Labs CEO Stani Kulechov on X.
According to him, the project’s goal is to become the largest and most efficient liquidity network in the world.
“We aim to become the network that developers, banks, and fintech companies connect to by default, improving liquidity and cost structure across the entire global financial system.”
In August, the company launched Aave Horizon on the Ethereum network. This is a separate lending market for traditional financial companies and institutional investors. They can borrow stablecoins secured by real-world assets.
Among the first participants were VanEck, WisdomTree, and Securitize.
See also: DeFi Aggregator on Solana Shuts Down After $40 Million Hack
On February 15, Kulechov noted that DeFi lending could get an additional boost from the tokenization of so-called “abundance assets,” such as solar energy, energy storage batteries, and robotics. In his estimation, by 2050 the total value of such assets could reach $50 trillion.
The project was originally launched as ETHLend in November 2017, and in September 2018 it was rebranded to Aave. Now, the protocol holds more than $27.2 billion TVL. Users can earn on deposits and take out instant loans using cryptocurrency as collateral.
Aave outpaces a number of major DeFi platforms by locked liquidity volume, including Morpho, JustLend, SparkLend, Maple, Kamin Lend, and Compound Finance. Each of them has a TVL exceeding $1 billion.
DAO Proposal Sparks Rift in Aave Community
Aave’s record came at a challenging moment. The community is debating money and control over protocol revenues. The main question: what role should Aave Labs play and how much influence should be left to the DAO?
AAVE holders were offered to vote on allocating up to $42.5 million in stablecoins and 75,000 AAVE to Aave Labs.
In return, Aave Labs is ready to transfer all income from products under the Aave brand to the DAO treasury. The company will operate using funds approved by the DAO.
