DeFi platform Aave, has decided to change the name of its upcoming project Aave pro to Aave arc. The new project is said to be launched in weeks from now.
According to CEO Stani Kulechov, DeFi Lending platform Aave has changed the name of its forthcoming institutional DeFi platform from Aave Pro to Aave Arc.
It was decided to portray its mission as a gateway for institutions to enter the decentralized finance industry.
While the platform will most certainly miss its intended July launch date, the final date will not be far away. Kulechov told The Block, “We’re talking about weeks from now.”
DeFi protocol Token holders can deposit funds into liquidity pools, which is how Aave works. Other cryptocurrency users can borrow tokens from these pools (after putting up collateral) and repay them with interest. For those that lend out tokens, this produces a profit.
Aave Arc’s purpose is to enable institutional investors with limited access to DeFi protocols in order to meet stringent regulatory requirements.
On both the lending and borrowing sides, Arc will offer private pools of funds into which only participants who pass know-your-customer procedures will be admitted.
Because participation is limited, private pools may end up with different yields than public pools in terms of yields. Participants with access to both the private and public pools, however, might arbitrate the difference, according to Kulechov.
This could help to ensure that the private pools maintain the same high-interest rates as the public pools.
“I think the larger vision of the Aave Arc market is to create a more comfortable risk appetite for institutions to participate in decentralized finance before, for example, having the risk appetite to participate towards the permissionless decentralized finance, which is the bigger vision offering,” said Kulechov.