The peer-to-peer (P2P) decentralised financial (DeFi) platform Aave (LEND) deployed on Ethereum have added Enjin (ENJ) to their growing list of digital assets enabling holders of the token to deposit and earn interest by lending to other users.
Enjin, whose users have created over one billion virtual in-game items and non-fungible tokens (NFTs), will now be included in Aave’s burgeoning $250 million liquidity pool along with another recent addition, REN protocol.
Decentralised Asset Markets
The Aave platform began life as Ethland and came to market in an initial coin offering (ICO) in Q4 of 2017 which raised around $18 million.
The non-custodial protocol effectively allows participants to create their own decentralised asset markets on the Ethereum blockchain. By depositing tokens on the platform users can receive interest on the holdings or utilise it as collateral to borrow against.
The innovation has recently been taken a step further and now depositors have the opportunity to delegate their credit lines to others in need of a loan but lack the assets to obtain one. This undercollaterised lending legal agreement is achieved through a smart contract designed by OpenLaw.
Earlier this week, Aave revealed that venture capitalists Framework Ventures and over the counter (OTC) providers Three Arrows Capital were early backers of the project and invested $3 million when the LEND token was priced at $0.10. At the time of publishing this article, LEND now stands at $0.28 per token.
Stani Kulechov, Aave CEO, believes that attracting the large investors who will participate in the platform’s governance as stakeholders “…will bring substantial expertise to scale the protocol for institutional usage….”
