Blockchain Solution For Crypto Lending Market Launched By Aave

Announcements, News | October 5, 2018 By:

Swiss-based tech firm Aave has launched a new blockchain solution for the digital asset-backed lending market.

Founded in 2017 by Stani Kulechov, Aave focuses on empowering people through innovation across all industries through the development of decentralized and hybrid blockchain applications. It has an extensive list of products that range from ambient accounts, lending software, custody and payments services to blockchain-based games and developer tools.

The company’s new blockchain solution, Aave Lending, aims to solve the issues that follow digital asset storing and digital asset-backed loan management for creditors. The solution allows creditors to easily start a crypto-backed lending business while Aave takes care of secure collateral storage, notifications and liquidation upon margin calls. The solution’s pilot product ETHLend claims to have generated over $15 million in lending volume since its launch last year.

“ETHLend pioneered decentralized p2p lending with its initial platform, and with Aave, we’re working to expand that vision into digital asset-backed lending for both businesses and individuals,” said Stani Kulechov, CEO of Aave.

Aave’s first client will be Cashare, a peer-to-peer crowdlending platform in Switzerland with over 10 years of experience in the online lending space. Aave Lending will enable Cashare to access the new digital asset class made up of companies and individuals, who wish to leverage their crypto assets for loans.

“No global service combines the fiat-based world of lending with that of cryptocurrency,” said Michael Borter, CEO and Co-Founder of Cashare. “With Aave, we can offer a more innovative solution. By providing digital asset-backed lending in addition to fiat loans, we’re able to offer investors the ability to participate in the crypto industry with an attractive return while maintaining a high level of security since all loans are asset backed.”

Kulechov said that partnering with Cashare is a great first step for Aave Lending, as they’re one of the biggest p2p lending platforms.

“By integrating with Aave Lending, Cashare’s customers will now be able to use their digital assets as collateral for loans,” Kulechov.