A proposal for the decentralized financing loan protocol (DEFI) to launch a centralized version of its service on the Crypto Exchange Kraken’s Ink Blockchain has received generalized approval from the community.
A request for comment Aave (ARFC) for the deployment of a Whitelabel version of Aave V3 for the Ink Foundation, the organization behind the Ink blockchain, was approved with 99.8% of the votes expressed in favor.
An ARFC acts as a preliminary vote outside the chain before carrying out a complete vote of the decentralized autonomous organization (DAO). The next phase is to write an Aave (AIP) improvement proposal which will be passed at Onchain.
The ARFC declares that “by granting a license to deploy a centralized version of the Aave code base (Aave), Aave can extend its adoption of technology while creating new sources of income.”
Aave had not responded to a request for comments in publication times.
Kraken unveiled his ink blockchain at the end of 2024, after an announcement in October. The chain aims to serve as a layer 2 platform that complies for tokenized assets and the institutional challenge.
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Institutional loan market AAVE EYES
The proposal stipulates that the partnership could be “an opportunity for Aave to expand its influence in the institutional loan space”, creating additional sources of income for the protocol.
The Aave DAO would receive a share “greater than or equal to the equivalent of a reserve factor of 5% based on the borrowing volume in all pools”. The INK Foundation has also committed funds in the development of the new protocol:
“The INK Foundation has initiated significant incentives in Bootstrap this body.
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Aave’s positive growth trajectory
The announcement follows Aave reaching a total locked value (TVL) of $ 40.3 billion in mid-May.
However, Defillama’s data show that Aave’s current TVL has dropped to around 33.5 billion dollars, placing it second behind Liquid Staking Platform Lido, which contains $ 34.3 billion in assets.
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