Aave Token Continues Its Downtrend Despite BlackRock Partnership Proposal

2024-8-28 11:11

Despite a promising partnership proposal with BlackRock, Aave’s token continues to decline this week. The integration plan, involving BlackRock’s USD Institutional Digital Liquidity (BUIDL) fund and Aave’s platform, has yet to influence the token’s short-term performance positively.

Aave aims to revamp its GHO Stability Module (GSM), central to managing its stablecoin, GHO, within the Aave ecosystem. By leveraging BlackRock’s BUIDL fund, this strategic initiative is poised to enhance the efficiency of its stablecoin system and allow its decentralized autonomous organization (DAO) to tap into real-world assets.

Aave Proposes to Utilize BlackRock’s BUIDL Fund

Specifically, the revised GSM is designed to ensure stable 1:1 convertibility of GHO with USDC. This will help optimize capital use and maintain strong backing standards.

Moreover, the proposal introduces a new model for effectively using the surplus USDC, which is currently idle.

“Aave Labs proposes to create a new GSM instance that supports external integrations and control mechanisms, specifically tailored for BlackRock’s BUIDL,” the Aave team explained.

Read more: What Are Tokenized Real-World Assets (RWA)?

This setup will facilitate fixed-ratio swaps between USDC and GHO. It will also enable the minting and burning BUIDL tokens in response to user demand. This aims to mirror the seamless exchange experience the existing GHO: USDC GSM provides.

Additionally, this move aligns with Aave’s goal to deploy a more capital-efficient system while adhering to high safety and backing standards as provided by USDC. Hence, the potential inclusion of a USDC buffer to offset transaction costs for small swaps is also under consideration.

BlackRock’s involvement through its BUIDL fund is crucial, offering on-chain access to traditional financial assets. This collaboration marks a significant bridge between traditional finance mechanisms and the efficiencies of blockchain technology. Importantly, the BUIDL fund has seen high activity, with dividends exceeding $2 million in July, up 16% from June.

Despite these strategic efforts, the AAVE token’s market response remains lukewarm. So far this week, the token is down by around 10%, currently trading at $121. The broader market downturn might also be influencing the token’s performance.

Read more: Aave (AAVE) Price Prediction 2024/2025/2030

Aave (AAVE) Price Performance. Source: TradingView

Nevertheless, the Aave community remains optimistic. With ongoing enhancements and the incorporation of real-world financial mechanisms, many anticipate that this will drive broader adoption and yield long-term benefits for the token.

“Exciting development for what will drive the next wave of mass adoption,” Emilio commented.

The forthcoming steps include gathering community feedback, which, if positive, will advance the proposal to the Snapshot stage for a formal consensus.

The post Aave Token Continues Its Downtrend Despite BlackRock Partnership Proposal appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Waves Community Token (WCT) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 1.05 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Доступно / Всего 10m WCT

partnership despite aave token blackrock proposal downtrend

Источник: beincrypto.com

partnership despite → Результатов: 87


Here Is Our 2 Cents: Analysts Call For RBLK and JASMY To Rally From $0.02 To Over $1, Outperforming TON This Bull Run

JasmyCoin is looking set for a huge rally due to a recent token lockup, while Toncoin price is struggling despite a bullish partnership with Trust Wallet. Meanwhile, the Rollblock ($RBLK) presale is attracting massive inflows as analysts predict it could reach a price over $1 and make early investors hugely rich.

2024-8-5 12:00


Borroe.Finance Glides Higher, Outperforms MANA Despite Inworld And Decentraland Partnership

In the ever-evolving landscape of cryptocurrencies, strategic partnerships and innovative developments often shape the trajectory of digital assets.   Recently, Decentraland, a prominent player in the blockchain-based virtual reality realm, joined forces with Inworld, an AI startup, to introduce a groundbreaking concept – AI-powered non-player characters (NPCs) within its Ethereum-based world.

2023-9-30 15:00


дальше еще 38 новостей →

Партнеры Currencies.ru

Аналог Notcoin - Blum - Играй и зарабатывай Монеты



Реклама на Currencies.ru

Самое свежее на Currencies.ru

AAVE price surges to 2-year high

AAVE price reached highs of $173 on Monday, its highest level since April 2022. TVL has also recovered as the decentralised finance protocol witnessed bullish sentiment. DeFi protocol Aave (AAVE) has seen the price of its native token surge to highs last seen in April 2022.

Aave’s Fee Distribution Plan Is a Win for Holders

Aave's contemplation of fee distribution signals a significant development in the evolution of decentralized finance platforms. The post Aave’s Fee Distribution Plan Is a Win for Holders appeared first on BeInCrypto.

Aave price is in trouble as US money market fund yields rise

Aave price has been in a strong bearish trend in the past few months. There are concerns about the American interest rates. Money market funds and CDs have a better yield than Aave. AAVE price has underperformed the market amid rising concerns about the DeFi protocol’s viability in a high-interest rate environment.

Aave DAO to decide on GHO Stablecoin on Ethereum

Key takeaways Aave community members to vote on GHO’s deployment on Ethereum The stablecoin has been live on the Ethereum blockchain’s Goerli testnet since February. Aave DAO to vote on GHO’s deployment on Ethereum The Aave DAO community members are set to start voting on whether to deploy the GHO stablecoin on the Ethereum blockchain.