Aave raises $3 million from Three Arrows Capital and Framework Ventures as per the latest reports that we have in our crypto news.
Two major crypto funds made a huge investment in the DeFi platform and one of the fastest-growing protocol Aave raises $3 million in capital from the notable funds Three Arrows Capital and Framework Ventures and they will combine forces to help Aave to attract more users and liquidity. DeFi money market Aave sold $3 million of its native token LEND from the treasury of the protocol to venture capital fund Framework Ventures and the Three Arrows Capital crypto hedge according to a new press release.
Aave is a high growth protocol that was seeing some amazing growth in 2020 going from less than a million of locked liquidity to the $220 million today. Since the Black Thursday, Aave gained major traction as a competitor to both MakerDAO and Compound. Framework Ventures is an extremely popular name in the DeFi ecosystem with huge investments and Kava, Chainlink, and Synthetix. The fund developed a reputation as one of the DeFi’s biggest investors by helping smaller projects grow and to make them contribute even more to the ecosystem. Michael Anderson, a co-founder of Framework Ventures said:
“We believe there will be a significant market shift of private borrow/lend activity moving to decentralized money market protocols. Aave stands to significantly benefit from this underlying shift by enabling more assets as collateral, continuing to innovate with new lending features such as credit delegation, and partnering with other DeFi protocols, ultimately fostering a community-first approach.”
Three Arrows will join Framework in their approach and will help Aave refine the use case for the native token with its new token economics that mostly focuses on staking and improving liquidity.
As per the recent reports, Tether and Aave protocol recorded a major increase in the demand for the USDT token, attributed to the growing interest in Defi applications. The blockchain-powered platform and the Aave open-source protocol have reported a huge increase in USDT demand, thanks to the increase in interest in decentralized finance applications. As noted in the press release, USDT remains the fastest growing stablecoin on the market and in the evolving DeFi applications space.
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