Hassan Maishera
On Tuesday, Aave Labs announced via X that DeFi United, a coalition of ecosystem participants, has issued the technical implementation plan to restore the KelpDAO rsETH.
So far, several protocols have contributed to DeFi United. The Compound Foundation will support DeFi United’s coordinated rsETH recovery effort with a contribution of up to 3,000 ETH.
The Avalanche Foundation is supporting DeFi United, the coordinated effort to restore rsETH's backing following the April 18 incident. Renzo AI has also supplied $10m+ of the Renzo treasury to Aave V3 stablecoin markets.
Circle Ventures, the VC arm of USDC’s Circle, is purchasing $AAVE tokens to help fund DeFi United. Other projects and individuals that have contributed include Consensys, Joseph Lubin, Marcelo Ruiz de Olano, Babylon Foundation, and more.
Aave is a decentralized finance protocol that allows people to lend and borrow crypto. Lenders earn interest by depositing digital assets into specially created liquidity pools. Borrowers can then use their crypto as collateral to take out a flash loan using this liquidity.
Aave (which means “ghost” in Finnish) was originally known as ETHLend when it launched in November 2017, but the rebranding to Aave happened in September 2018. (This helps explain why this token’s ticker is so different from its name!)
AAVE provides holders with discounted fees on the platform, and it also serves as a governance token — giving owners a say in the future development of the protocol.
Aave protocol is a decentralized, open-source, and non-custodial money market protocol. Depositors earn interest by providing liquidity to lending pools, while borrowers can obtain overcollateralized loans by using the liquidity from these pools. AAVE is trading at $97.27 per token, up 1.2% in the last 24 hours.
The project allows people to borrow and lend in about 20 cryptocurrencies, meaning that users have a greater amount of choice. One of Aave’s flagship products is “flash loans,” which have been billed as the first uncollateralized loan option in the DeFi space. There’s a catch: they must be paid back within the same transaction.
