Home Coins Bitcoin (BTC) Money Market Protocol Aave Settles $300 Million in Defi Flash Loans

Money Market Protocol Aave Settles $300 Million in Defi Flash Loans


1596309704 65 Major Chinese Banks Bar Customers From Buying Gold Precious Metals

This weekend the decentralized money market protocol Aave broke records as the community witnessed a massive flash loan of $14 million worth of the stablecoin DAI. So far, the Aave protocol has seen over $300 million in flash loans to-date and this trend doesn’t seem to be abating any time soon.

In just a short period of time, the Aave protocol (the Finnish word for “ghost”) has seen enormous demand. Essentially, Aave is a decentralized finance (defi) protocol that currently has 19 supported tokens including ethereum (ETH).

To-date the total-value locked (TVL) is around $1.5 billion at the time of publication. Aave allows for unique lending and borrowing experiences like flash loans, credit default swaps, and credit delegation.

Flash loans are a unique concept that allows the user to borrow funds without the need for collateral.

“Flash Loans are the first uncollateralized loan option in defi,” the Aave website explains. “Designed for developers, Flash Loans enable you to borrow instantly and easily, no collateral needed provided that the liquidity is returned to the pool within one transaction block.”

1599020762 34 Money Market Protocol Aave Settles 300 Million in Defi Flash
Aavewatch stats show during the last two months people leveraging flash loans have grown exponentially.

On August 29, a user executed Aave’s largest flash loan of $14 million worth of DAI and so far Aave has seen $300 million in flash loans. More than half of the aggregate of flash loans settled were executed during the month of August.

Data from the web portal Aavewatch shows that flash loans executed from July 30 to September 1 saw an increase of 117%. The month prior defi flash loans using Aave increased by 809%.

Despite the Aave website explaining that flash loans are for developers, a number of people without programming abilities are leveraging these types of uncollateralized loan options.

Today there’s a couple of online tools that create defi composability. This means any user can leverage a number of defi apps in a lego-like fashion and execute the actions in a single transaction.

1599020762 809 Money Market Protocol Aave Settles 300 Million in Defi Flash
Furucombo is a tool that can create a variety of defi actions that will be settled in a single transaction. The customized defi lego tool, however, is in beta software and users should understand that the platform could be unstable and risky.

One tool called Furucombo is a defi application that creates “defi legos” with a number of protocols. However, the creators warn that “Furucombo is beta software, and it should be treated as highly unstable.”

Despite the warning, users can leverage the application to create defi composability with applications like Aave, Maker, Uniswap, and Curve.fi by simply connecting a wallet.

“Create customized defi legos and put all strategies into one transaction,” the tools website notes. “Pick up a defi protocol you want and set up the inputs. You can then send the transaction or pick another defi protocol. Drag the cube to rearrange the order of your actions. Once you’re ready to send out the transaction, connect your wallet and click ‘Send.’”

1595918680 549 Hackers Transfer 28 Million Worth of Bitcoin from 20161597173073 593 Billion Dollar Public Company Microstrategy Moves 250 Million Into BTC

Another application, called defisaver.com also offers functionality with Aave, Maker, and Compound.

Users can connect their Metamask wallet or hardware wallets like Trezor and Ledger as well in order to access defisaver.com’s user interface.

This will allow for a connection with a defi protocol’s default app like Aave’s platform. Users can then create a traditional account but also build a smart wallet. Defisaver.com’s smart wallet feature provides a personal smart contract wallet that will enable the usage of advanced features.

What do you think about the Aave platform issuing $300 million in flash loans? Let us know in the comments section below.

Tags in this story
117%, Aave, Curve.fi, decentralized finance, DeFi, Defi Apps, defi composability, Flash loan options, Flash loans, Furucombo, lego-like transactions, Maker, uniswap, zero collateral

Image Credits: Shutterstock, Pixabay, Wiki Commons, Aavewatch, Furucombo,

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





Source link

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
473FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,580FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.17
GBP
1.28
CHF
1.08
NOK
0.11
JPY
0.01
CAD
0.75
AUD
0.70

Most Popular

How Binance is strengthening its hold on Bitcoin, altcoin derivatives markets

Binance Futures was launched a year back and today, as per CoinGecko’s ranking of top derivative exchanges, it stands third. The exchange has...

WTF happened in 1971 (and why the f**k it matters so much right now) – Cointelegraph Magazine

If you’ve ventured on to Crypto Twitter this year, you may have seen a tweet from the meme account WTF Happened in 1971?Created...

Leading Auction House Christie’s Listing Bitcoin Art for the First Time

The world’s largest auction house, Christie’s, will be presenting Bitcoin artwork for the first time. Block 21 of “Portraits of a Mind,”...
bitcoin
Bitcoin (BTC) $ 10,490.35
ethereum
Ethereum (ETH) $ 339.63
ripple
XRP (XRP) $ 0.232524
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 215.28
bitcoin-cash-sv
Bitcoin SV (BSV) $ 153.60
litecoin
Litecoin (LTC) $ 44.77
eos
EOS (EOS) $ 2.56
binancecoin
Binance Coin (BNB) $ 23.83
okb
OKB (OKB) $ 6.17
tezos
Tezos (XTZ) $ 2.05
leo-token
LEO Token (LEO) $ 1.24
cardano
Cardano (ADA) $ 0.081115
monero
Monero (XMR) $ 91.48
stellar
Stellar (XLM) $ 0.071276
chainlink
Chainlink (LINK) $ 8.18
huobi-token
Huobi Token (HT) $ 4.61
tron
TRON (TRX) $ 0.025493
usd-coin
USD Coin (USDC) $ 1.00
dash
Dash (DASH) $ 67.57
neo
NEO (NEO) $ 21.18
iota
IOTA (MIOTA) $ 0.248827
nem
NEM (XEM) $ 0.107425
zcash
Zcash (ZEC) $ 53.18
maker
Maker (MKR) $ 458.58
paxos-standard
Paxos Standard (PAX) $ 1.00
ethereum-classic
Ethereum Classic (ETC) $ 4.95
vechain
VeChain (VET) $ 0.012144
true-usd
TrueUSD (TUSD) $ 1.00
ftx-token
FTX Token (FTT) $ 3.58
kucoin-shares
KuCoin Shares (KCS) $ 1.03
waves
Waves (WAVES) $ 2.41