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Announcing the Investment of Giant Companies, Altcoin Rises Hard

Ethereum-based lending protocol, Aave raised $ 3 million from Framework Ventures and Three Arrows Capital with a token sale.

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Announcing the Investment of Giant Companies, Altcoin Rises Hard

The two funds bought about 30 million LEND tokens, for $ 0.10. According to ParaFi partner Santiago Roel Santos and Aave CEO Stani Kulechov, mutual fund ParaFi has about $ 4.5 million LEND, which they have accumulated through the market purchase and selling a token with the Aave team.

Aave Will Benefit

It is seen that there will be a significant market change in private borrowing / lending activities moving towards decentralized money market protocols. Aave seems to benefit significantly from this fundamental change.

Indeed, the release of the governance token of the lending protocol Compound triggered an interest around DeFi applications. The total value locked in the protocol jumped from $ 90 million to $ 695 million at the time the governance tokens were first written. Offering lending products, Aave also saw growth in both borrowing and lending demands.

In addition to the new investment, Aave introduced several new features that the team has prepared for deployment. According to Kulechov, the team plans to test the governance smart contract in the next two weeks, which will allow users to participate in the protocol’s chain governance process and vote on proposals.LEND, which was first offered in 2017 with the first cryptocurrency offer, will migrate to AAVE and a new reward system that will compensate liquidity providers and encourage AAVE holders to share their tokens for the insurance fund. The fund will be built on the market making protocol Balancer as 80% AAVE / 20% ETH pool. Stakers will be able to receive rewards from both Aave and Balancer.

Price Bounced

Upon this development, there has been a significant increase in the price of LEND.

Aave Lend
Aave Lend

At the time of writing, LEND is trading at $ 0.26. With a 14% increase, LEND’s market value has reached 345 million dollars.

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