DeFi By Design EP #4: Building The Future of DeFi Together w/ Aave
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In this episode we chat about what makes Aave so special, the future of DeFi, and more.
We learned a lot and you will too.
Remember why we do this: Were on the route to take the power back into our hands once and for all.
We’re opting out of the current system.
We’re making our own path.
And we couldn’t do it without Aave.
Lets go lets go lets go.
What’s next for Aave?
Aavenomics & Governance -- A Move Toward Decentralization
In the immediate future, Aave will be moving toward a more decentralized protocol where the governance is in the hands of the users. The Aavenomics proposal was released recently, which highlights the token migration from LEND to AAVE, Aave Improvement Proposals (AIPs), voting and governance, and the Safety Module. The governance is currently on the Ropsten testnet, and the community is welcome to test it out.
The first vote on mainnet will be on the migration from LEND to AAVE!
Credit Delegation-- Synergies with “OldFi”
For the full rundown on Credit Delegation, Stani wrote a great one here. Essentially, Credit Delegation allows party A to deposit in Aave and then delegate their credit line to Party B who can borrow without needing to put up their own collateral. The terms and conditions are all decided in a legal agreement with OpenLaw. The first Credit Delegation has already happened with DeversiFi as the borrower, a momentous step forward.
Credit Delegation makes DeFi into a source of liquidity for all of finance. For example, a depositor could be a DeFi fund looking for credit exposure, and borrowers could be businesses, NGOs, institutions, etc. The future of DeFi is interoperable with OldFi.
Aave V2 was announced recently, with many new features to make the Aave Protocol push the limits of what’s possible with DeFi.
These features include (full list and more detailed explanations in this blog post):
Repay with collateral
Debt tokenization and native credit delegation
Fixed rate deposits
Private markets (including a collaboration between the Aave Protocol and RealT to bring mortgages on Ethereum!)
Native trading functionalities (debt trading, collateral trading, margin trading)
Governance in hands of users (vote delegation, cold wallet voting)
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DISCLAIMER: Investing into cryptocurrency and DeFi platforms comes with inherent risk including technical risk, human error, platform failure and more. This is not financial advice. Please refer to our blog for more on mitigating your downside when using these protocols!
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