Aave Just Released an AMM Market
- The newly-created market supports 14 token pairs from Uniswap and 2 from Balancer.
- The list of supported LP tokens is not final, and users are encourage to actively participate in Aave Governance.
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Aave has just informed the community that a new AMM market service is available on their website. While a previous proof-of-concept has already shown their intentions to incorporate LP tokens into their list of available collateral options, the announcement caught traders and users by surprise, since cryptocurrency enthusiasts are typically subjected to long teasing and announcements of announcements before anything substantial is being presented.
Now users will be able to deposit the LP tokens they have received from two other superstar DeFi services — Uniswap v2 and Balancer in a fashion similar to that of the Uniswap v1 proof of concept they presented almost a year ago. What’s different this time is the incorporation of Balancer LP tokens as well. For the unaware, Balancer is an innovative competitor of Uniswap which introduced the possibility for users to create liquidity pools that are not based on a 50–50 spread between the tokens.
The newly announced pools feature 14 token pairs from Uniswap, 12 of which based on WETH, as well as two liquidity provider tokens from Balancer — those for the WBTC/WETH and BAL/WETH pairs. The value of the LP tokens will be determined thanks to the utilisation of Chainlink decentralised oracles.
The list of supported pools is not final as it will be subject to change via Aave Governance proposals. As the official announcement hints, Aave Safety Module can also be added for the newly created pools through the same mechanism. However, it is not active by default.
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- The governance proposal to launch Aave v3 on the Ethereum network passed unanimously, with all participating AAVE token holders voting in favor.
- The third version of Aave will exist alongside v2, and will initially support seven assets, including wBTC, wETH, wstETH, USDC, DAI, LIMK, and AAVE.
- The temporarily frozen lending markets include YFI, CRV, ZRX,MANA, 1INCH, BAT, ENJ, AMPL, DPI. RENFIL, MKR, xSUSHI, sUSD, USDP, LUSD, GUSD, and RAI.
- In order to improve its risk management, the protocol will no longer allow users to deposit or take loans with them on the platform.