The post Aave Launches Lido-Only V3 Deployment appeared on BitcoinEthereumNews.com.

The new market exclusively supports liquidity pools for Lido’s stETH and wrapped stETH liquid staking token. Aave, the largest DeFi lending market, is deepening its ties with Lido, the protocol behind the top liquid staking token, stETH. On July 29, Lido announced the launch of a dedicated v3 deployment for Lido Finance’s stETH and wstETH tokens. Aave noted that Lido Alliance will provide liquidity incentives for users and reward builders for “novel use cases” leveraging the market. The deployment features isolated market features and a borrowing cap of 90% — up from 78.5% on the regular v3 market for stETH — with Aave describing the new platform as the most efficient platform for recursive stETH borrowing in web3. Aave added that the launch opens the door to the deployment of additional custom pools in the future. Aave also hopes to solidify itself as the preferred DeFi venue for stETH users. “This first specialized market is just the beginning, leading in the future to additional optimized pools with their own unique risk profiles and making Aave and DeFi more attractive to institutions and users,” said Aave Labs Founder and CEO Stani Kulechov. “These new Markets Instances allow for use-case-oriented hyper-efficient versions of Aave while keeping risk in control, it’s a net benefit and a new frontier for the DeFi ecosystem,” said Marc Zeller, founder of Aave Chan Initiative. Aave currently hosts $4.63 billion worth of stETH, accounting for 25% of Aave v3’s $16.4 billion total value locked (TVL) on Ethereum to rank as the protocol’s largest asset pool. Over the past 24 hours, AAVE’s price is up 2.75% whileLido’s LDO gained 2.80%, according to The Defiant’scrypto price feeds. Lido Alliance The news comes as Lido is looking to play a more active role in cultivating its growth via the Lido Alliance,…

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Filed under: News - @ July 30, 2024 10:16 pm