- A proposal for a centralized version of Aave on Kraken’s Ink blockchain won 99.8% community approval in an initial vote.
- The plan would allow Aave to expand its technology and create new revenue streams through collaboration with the Ink Foundation.
- The proposed partnership targets the institutional lending market, with both organizations expecting significant early liquidity in the new platform.
- Aave DAO is set to receive at least a 5% share of revenues based on borrow volume from all pools on the platform.
- Aave’s total value locked grew to $40.3 billion, but recently dipped to $33.5 billion, making it the second-largest DeFi protocol by assets.
A community proposal to launch a centralized version of the lending protocol Aave on Kraken’s Ink blockchain has received strong approval from stakeholders after a preliminary vote. The vote, initiated as an Aave request for comment (ARFC) for a whitelabel deployment of Aave v3, saw 99.8% of votes cast in favor. The proposal now moves toward a formal onchain vote.
According to the ARFC, granting a license to create a centralized instance of Aave would help expand the protocol’s reach and provide new income streams. The separate entity involved, the Ink Foundation, which backs the Ink blockchain, committed funds to support the new protocol.
The proposal targets the institutional lending market and outlines that the Aave DAO will receive a revenue share of at least 5% of the borrow volume across all lending pools. The Ink Foundation has also allocated significant incentives, with multiple liquidity mining programs planned to supply over $250 million to the new platform. Liquidity mining is a way for crypto projects to attract funds by rewarding users for providing assets to the platform.
Kraken introduced the Ink blockchain in late 2024. The chain is designed to serve as a compliance-focused layer-2 network, supporting tokenized assets and decentralized finance (DeFi) for institutional users.
Aave recently reported a total value locked (TVL) of $40.3 billion in mid-May. However, latest figures from DeFiLlama show a decline to around $33.5 billion. This ranks Aave as the second-largest DeFi protocol, after the liquid staking platform Lido, which holds approximately $34.3 billion in assets.
Further developments, including the official Aave Improvement Proposal (AIP), are expected as the process moves forward with an onchain vote.
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