Hassan Maishera
On Wednesday, Aave Labs announced via X that a new proposal has been submitted seeking to onboard OpenUSD’s OUSD to Aave V3 Core and Aave V4 Core.
OUSD is a new stablecoin purpose-built for use cases across banking, cross-border payments, institutional trading, and more.
At launch, OUSD is proposed as a supply and borrow asset only, with collateral usage disabled on both deployments. Collateral enablement, higher caps, and E-Mode or additional Spoke configurations can be revisited through separate proposals once OUSD has established onchain liquidity and price history.
Onboarding OUSD to Aave’s core markets offers the DAO:
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New stablecoin liquidity: OUSD’s distribution model gives payment networks, fintechs, and exchanges a direct economic incentive to grow supply. Listing on Aave’s core markets positions Aave as the primary onchain venue for OUSD lending from day one.
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Borrowing demand for a new dollar asset: Borrowable OUSD gives existing Aave users another stablecoin to borrow against their current collateral, and gives OUSD holders a native yield venue.
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Alignment with the Aave ecosystem: Aave is an Open Standard launch partner. OUSD is also proposed as a borrowable asset in the Sentora Externally Curated Hub on Aave V4. Listing OUSD in DAO-managed markets ensures OUSD liquidity also grows on the Aave DAO’s own Hubs, not only in externally curated instances.
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Revenue: Reserve factor and liquidity fee income from OUSD borrowing accrues to the Aave DAO.
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 $165.42 per token, up 3.4% 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.
