Tether (USDt) Use on Aave DeFi Protocol Skyrockets, Surpassing $7M

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Thu, 05/28/2020 - 10:34
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Vladislav Sopov
The Aave DeFi digital banking protocol has witnessed a huge influx of USDt liquidity used in flash loans and deposits. The net value locked in Aave has broken above $60M
Tether (USDt) Use on Aave DeFi Protocol Skyrockets, Surpassing $7M
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According to a press release shared with U.Today Crypto News, the amount of USDt liquidity on the Aave DeFi protocol has surged. This boosted the adoption of Aave major services, i.e. flash loans and deposits.

Liquidity matters

USDt is the fastest growing stablecoin in DeFi systems. With 7.2M USDt available on the Aave Protocol, it accounts for more than 10.2% of all in-protocol liquidity.

In particular, USDt is in high demand in flash loan services. With flash loans, users can borrow a range of ERC20 tokens without posting collateral to back those loan positions, provided that the loan is returned in the same transaction.

Typically, flash loans are used in high-frequency trading and arbitrage solutions. 

Deposits represent another high-profit opportunity for USDt liquidity users in Aave. USDt, on average, offers depositors a rate of 6.37% APY interest on their USDt without having to give up custody.

Institutional-level growth

Stani Kulechov, CEO of Aave, highlights the crucial importance of USDt in decentralized finances, in particular - for secure deposits by institutions:

No other stablecoin has grown at such a pace as USDt in the DeFi lending market space

The role of USDt in DeFi is also outlined by Paolo Ardoino, CTO at Tether, who calls his product 'the stablecoin of choice across DeFi platforms'.

This upsurge has already resulted in prominent Aave promotion amid top DeFi ecosystems. According to Defipulse, an analytics and rankings hub tracking key metrics for DeFi, Aave, with $69M locked in contracts, holds the fourth position by their metrics.

Also, Aave is the fastest growing protocol of all DeFis built on top of the Ethereum (ETH) blockchain.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
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As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)