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Aave Pro will allow Institutional Investors to interact with DeFi

Updated: Aug 30, 2024
Published: Jul 5, 2021
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The decentralized lending protocol Aave plans to launch 'Aave Pro' later this month as an entrance for institutions to interact with decentralized finance. The platform, which will offer the same types of services as Aave's current platform. The platform will be partnering with digital asset custody and settlement platform Fireblocks.

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Aave announced the pro version during a webinar

Aave announced the new platform in a webinar titled "Next Steps in Institutional DeFi,". The webinar featured Stani Kulechov, Michael Shaulov, and Mike Novogratz, the CEOs of Aave, Fireblocks, and Galaxy Digital.

One webinar participant posted a screenshot of an email he received on Twitter. The email send out by Aave was a recap of the webinar explaining what Aave Pro is.

The recap of the Webinar explained that Aave is launching Aave Pro in response to "extensive demand from various institutions." The platform will initially support only four cryptocurrencies: BTC, ETH, AAVE, and USDC, because AAVE says, that's where the institutional demand is concentrated. Aave Pro's pools will be kept separate from the central platform. The email also stated that they might want to decentralize the governance of Aave Pro in the future.

Aave partners with Fireblocks to add a whitelisting layer to Aave's V2 smart contracts and to ensure that only "institutions, corporates, and fintechs" are approved through Fireblocks Know-Your-Customer verification process can access the platform. Fireblocks will also be responsible for  Aave Pro's anti-money laundering and anti-fraud controls.

The crypto community has mixed feelings about the announcement 

The announcement on Twitter received a nice amount of replies on Twitter. Many users pointed out that this is positive for the crypto space, as institutional capital important for exponential growth. They think Aave Pro can be the entrance for institutions into DeFi and support the platform. 

Other, more skeptical users point to the ongoing lawsuit against Fireblocks by staking provider StakeHound. The staking provider filed a lawsuit over the alleged deletion of private keys to a wallet that contained $72 million in ETH. 

Aave had already mentioned a platform for institutional investors around May, when Kulechov said that Aave had created a "private pool" for institutions to "practice" before entering into DeFi. Aave also partnered with Compound in early 2020 to launch DeFi services for institutional investors.

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