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Decentralized lending and borrowing protocol Aave has received a $25 million investment from Blockchain Capital, Standard Crypto and Blockchain.com Ventures, CoinDesk reported on 12 October.

According to the publication, the funds were raised from strategic investors in order for the project to bring DeFi “closer to institutional use”, as well as expand its team size to facilitate the growing Asian markets. Stani Kulechov, Aave’s CEO, added in his statement that the new stakeholders will also be participating in the protocol’s governance and staking.

Currently the third largest project in the Decentralized Finance (DeFi) sector, Aave has almost $1.3 billion worth of cryptocurrency locked on its platform. The project allows its users to earn interest on their deposits by providing liquidity to lending pools, and also offering crypto lending services with little collateral.

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The project is currently in the process of migrating its LEND token to a new and improved AAVE token, which will enable the community to have greater power in the decision making. Designed to make the project more decentralized, the new token will allow Aave users to vote, and will also grant them staking rights. Kulechov said in a statement:

“Aave is now moving towards the AaveDAO, which means that after the migration from LEND to AAVE, anyone can build new functionality into the protocol along with the Aave team, effectively decentralizing development and governance.”

The project has also promised that its new upgrade, Aave V2, will come with many innovative features. Amongst the new additions are debt tokenization, native credit delegation, fixed-rate deposits, gas optimization and others. Users are able to switch from their old token to the new at a 100 LEND per 1 AAVE transfer rate.

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