The DeFi industry does not seem to be stopping and neither does the decentralized money market protocol dubbed Aave. As per the reports, Aave’s record-breaking performance has led it to witness a massive flash loan of $14 million in stablecoin DAI.
Indeed, this is a huge milestone for the Aave proponents. As of now, money market protocol has minted more than $300 million in the DeFi flash loans and this momentum of Aave will likely continue.
Lately, the demand for Aave has doubled. Moreover, it supports 19 tokens in total including the altcoin king Ethereum (ETH). Aave provides lending and borrowing services such as credit delegation, flash loans, and credit default swaps. While writing this post, Aave’s Total Value Locked stands around $1.5 billion.
The journey of Aave is much alike the roller coaster ride Ethereum has been on for the last few months.
Major DeFi flash loan pushes Aave to set new highs
Folks new to the concept of flash loans need to know that these are very efficient loan lenders that do not require collateral from you.
“Flash Loans are the first uncollateralized loan option in DeFi,” the Aave website explains. “Designed for developers, Flash Loans enable you to borrow instantly and easily, no collateral needed provided that the liquidity is returned to the pool within one transaction block.”
Besides, the month of August 2020 brought a wave of prosperity for both DeFi and the Cryptocurrency industry. Following Aave’s recent evolvement, this time it has set a new record with its flash loans nearing $300 million.
The news comes after one user performed a flash loan of $14 million worth of stable coin DAI. Hence this becomes the highest amount of flash loan to be ever conducted by an individual on Aave.
Aavewatch, data provider protocol of Aave suggests that the number of flash loans conducted from July 30 to September includes one flash loan noticing a whopping surge of 117%. Last month, Aave saw an increase of 809% with DeFi flash loan implementation.
Even though Aave has clearly stated that flash loans are only available for the developers, some people are attempting to take advantage of Aave’s uncollateralized loan policy without even knowing to program.
Nowadays anyone can use DeFi application in any way they want just because of a few systems available online. Lastly, Aave stands in the first position in terms of Locked collateral.