DeFi

In Aave Founder Stani Kulechov’s ‘Grand Plan’, $11 Billion DeFi Lender Overtakes MakerDAO – DL News

Published

7 months ago

5 July, 2024

CoinFlix Staff

In Aave Founder Stani Kulechov’s ‘Grand Plan’, $11 Billion DeFi Lender Overtakes MakerDAO – DL News

Aave’s founder explained to DL News how decentralization opens the doors to competition.
Aave has transformed into a DeFi supermarket with a wallet, social media channel, and stablecoin.
Managing the complexity of a new business structure poses challenges.

Aave Labs has built its brand over the past seven years by creating a no-frills lending platform.

It avoided complexity and weathered the 2022 bear market as a stable DeFi banking business.

Today, Stani Kulechov, the company’s Finnish co-founder, is transforming Aave into a DeFi supermarket.

It includes a stablecoin, called GHO; a crypto wallet called Family; and Lens Protocol, as well as a social media network that is in the process of raise $50 million investors.

Alongside Aave’s lending operations, these units are now housed under a new parent company called Avara, based in London.

These moves strengthen Aave’s rivalry with several DeFi companies.

“Obviously, the advantage of a decentralized system is that there are always open doors for competitors,” Kulechov said. DL News.

No other player looms larger than MakerDAO, the seven-year-old stablecoin issuer that has long been in lockstep with Aave. As Aave has added new companies, so has Maker.

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“Every person on the planet has social capital.”

— Stani Kulechov, Aave

In his attempt to grow, Kulechov trades a simple model for a more complex ecosystem.

Kulechov said DL News This won’t be a problem. By building a single purchasing platform, Avara will cater to the needs of both DeFi newcomers and seasoned cryptocurrency users.

“Every person on the planet, regardless of language, nation, geographical location, has social capital,” Kulechov said.

“If we can solve the problem of who owns what we own online, that will fundamentally unlock more value.”

So far, Kulechov and the Aave team have proven their ability to create value.

By charging fees to users to borrow, lend, liquidate loans and make deposits, Aave has recorded approximately $100 million in income over the past 30 days, according to data from Logical token.

Aave’s total locked value, or deposits, has more than doubled in the past 12 months, to $11 billionData from DefiLlama shows this. Aave, active on a dozen different blockchains, surpassed MakerDAO this year to become the third most valuable DeFi project.

Aave’s TVL over the past three years. Source: DeFi Llama.

Building a walled garden for Aave users may seem counterintuitive, but it makes sense, said Drew Osumi, co-founder of venture capital studio Number Group.

“If Avara has a social network, a wallet, lending, and a stablecoin, I feel like there’s a world out there where if someone is completely new to crypto, they could see this as an easy onboarding experience,” Osumi said. DL News.

“I feel like the big plan is to be a decentralized, permissionless Meta, where users are actually valued at market value.”

But why would the world need another social media platform?

“The main idea will probably not be to replace Twitter,” Kulechov said. “What will be interesting is to have an open shared network, which anyone can create, and which already has users.”

Lens Protocol allows developers to build Instagram-like apps and add cryptographic features to them.

It caters to NFT collectors by turning profile pictures and user IDs into non-fungible tokens. It also allows decentralized autonomous organizations, or DAOs, to propose and vote on key issues for their community directly on Lens.

DeFi Rivals

Aave and Maker have been the foundation of decentralized finance since the ICO era in 2017. Both have benefited from meteoric crypto rallies and both have suffered market crashes.

The two often collaborated even though they were in competition.

This duel reached its peak with competing stablecoins.

Maker issues DAI, DeFi’s oldest decentralized stablecoin. Aave has started issuing its own stablecoin, GHOin July 2023.

Stablecoins used throughout DeFi. Source: DeFi Llama.

Both stablecoins are pegged to the dollar and are over-collateralized by other cryptocurrencies. For example, to mint $1 of either stablecoin, you would need to invest more than $1 in another cryptocurrency such as Ethereum.

It’s a market expected According to Bernstein analysts, this figure is expected to reach $3 trillion over the next five years.

“Stablecoins represent the largest market opportunity in crypto,” said Lito Coen, head of growth at Socket Protocol, a cross-chain bridging protocol. “If you’re going to tackle another market after lending, stablecoins are the most logical expansion.”

Extreme volatility

With GHO, Aave is also showing competitiveness. Indeed, Maker launched its own lending protocol, Spark, in 2023.

“GHO makes a lot of sense, especially when one of the largest stablecoins is directly overcollateralized spear a competitor to Spark,” Coen said.

The battle lines became clearer in April when the Maker community offered to support $1 billion in DAI with a new untested stablecoin issued by Ethena, a platform on the Ethereum blockchain.

Called USDe, the asset supports its $1 ankle differently from GHO or DAI.

Rather than being over-collateralized, it is backed by staked Ethereum positions and short Ethereum positions on exchanges that make money if the price of Ethereum falls. This is an innovative system, but one that has not proven itself in conditions of extreme market volatility.

For Aave, the arrival of the Ethena market brought many risks. If USDe collapsed due to the market crash, there was concern that DAI would also lose its peg.

With over $130 million in direct investment (DAI) in Aave, this was a risk the Aave community could not bear.

1B $DAI

– made from scratch (20% of total supply)

-in a protocol not tested in combat
-with zero risk mitigation
-weak oracles in less than a month
-for assets that are hyper-sensitive to market conditions

is the definition of reckless

Will offer DAI LTV reduction in Aave today

— Marc “Chainsaw” Zeller 👻 🦇🔊 (@lemiscate) April 2, 2024

In April, Marc Zeller, founder of a DeFi governance project called Aave Chan Initiative, propose eradicate all DAI markets on Aave.

Kuleshov agreed.

“The departure process should begin immediately in case of a favorable outcome,” Kulechov said. wrote in the Aave forum.

Kuleshov attributed the episode to risk management rather than direct competition.

“There has been a significant increase in the perception of DAI risk,” he said. DL News“If that risk increases, the best thing to do is to be as conservative as possible.”

Meanwhile, Kulechov’s Lens protocol faces competition from another crypto-based social media protocol called Farcaster.

Both offer many similar features, but Lens stores more activity (likes, follows, and posts) on the blockchain than Farcaster. Farcaster opts for speed and user experience.

Farcaster has a big lead so far, with almost 600,000 users compared to Lens’ 430000. It also recently closed a $150 million funding round at a $1 billion valuation, led by Paradigm and joined by Andreessen Horowitz, USV and other leading venture capitalists.

“It’s a completely different sector within crypto, much less proven.”

— Lito Coen, Socket

It remains to be seen, however, whether these two social networks will last.

“The most uncertain sector for me is Lens,” Socket’s Coen said. “It’s a completely different sector within cryptocurrency, which, in general, is much less proven.”

New fundraising

Kulechov hopes so too.

In June, DL News announced that it was launching a new fundraising round that would value Lens at $500 million.

“I’m a big fan of what Stani is doing with Avara,” Coen said. “I don’t think enough teams are thinking big and trying to grow horizontally.”

Despite all the new technologies and business models in DeFi, Kulechov’s initiatives show how old-school product development and new markets are essential to growth.

“We like to move from building infrastructure to thinking about what these businesses are and also what interfaces we can build,” Kulechov said.

Liam Kelly is a DeFi correspondent at DL NewsContact us at liam@dlnews.com.

Fuente

DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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