DeFi protocol AAVE now supports AVAX, alongside ETH and MATIC
- DeFi’s leading decentralized lending protocol Aave listed Avalanche as its third public chain.
- The smart contract platform Avalanche first gained popularity with its $180 million incentive program “Avalanche Rush.”
- Users with assets on Ethereum can now bridge their holdings to Aave through the Avalanche bridge with the latest deployment.
Aave is a system of decentralized lending pools that collects user funds and supports lending/ borrowing through smart contracts. Aave now supports Ethereum-killer Avalanche on its platform.
Avalanche bridge to boost assets in the Aave ecosystem
Avalanche is a smart contract platform, an Ethereum-killer that is compatible with the Ethereum Virtual Machine (EVM). Avalanche’s bridge is a popular vehicle used to transfer assets to and from the Ethereum network.
Aave Protocol has integrated Avalanche as its third public blockchain after Ethereum and Polygon. This makes it easier for traders to move their assets on Ethereum to Aave for lending or staking.
The non-custodial liquidity protocol announced the arrival of Avalanche earlier today,
It’s here. The Aave Protocol has now been deployed on @avalancheavax pic.twitter.com/RUp980IE7f
— Aave (@AaveAave) October 4, 2021
Aave’s Avalanche market currently has a total market size of $1.8 billion for its lending pools. The arrival of Avalanche is expected to drive demand for AAVE higher and increase the volume of transactions on the Avalanche bridge.
Avalanche first garnered mainstream attention with the launch of the $180 million incentive program “Avalanche Rush.”
Less than a week ago, Avalanche’s top decentralized exchange, Trader Joe, announced a $20 million in liquidity mining rewards. After integration with AAVE, the on-chain activity of the Avalanche token (AVAX) is expected to explode.
Trader Joe incentives are focused on “growth in native markets,” which is likely to increase the demand for AVAX across exchanges further.
.@AaveAave is live on #Avalanche–launching alongside $20M in $AVAX incentives.
— Avalanche (@avalancheavax) October 4, 2021
...#AvalancheRush in full force this autumn: https://t.co/8CNKNIEGtB pic.twitter.com/6mhppIsrDw
Cryptocurrency analyst @Murfski_ predicts a short-term correction in Avalanche’s native token AVAX. The analyst does not expect the AVAX price to recover anytime soon.
$AVAX
— Murfski (@Murfski_) October 5, 2021
Still holding my spot from $35 but think we might have to consider a correction short term
We've had a phenominal run but appear to be forming a wedge like pattern, PA doesn't look too healthy either
Just my two cents - chance to compound existing positions imo pic.twitter.com/4b6IjV7aKj
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
