{"id":89168,"date":"2024-08-08T10:30:48","date_gmt":"2024-08-08T14:30:48","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=89168"},"modified":"2024-08-08T10:30:53","modified_gmt":"2024-08-08T14:30:53","slug":"aave-dao-onchain-fixed-yield-loan","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/aave-dao-onchain-fixed-yield-loan\/","title":{"rendered":"Aave DAO, Trident Digital Launch First Onchain Fixed-yield Loan"},"content":{"rendered":"\n

The Aave DAO (decentralized autonomous organization)<\/a> has effectively deployed the first onchain fixed-yield loan in partnership with Trident Digital, IntoTheBlock (ITB), and TokenLogic.<\/p>\n\n\n\n

\"Aave
Aave DAO, Trident Digital Launch First Onchain Fixed-yield Loan<\/figcaption><\/figure>\n\n\n\n

Cointelegraph received a press release stating that the $100 million product will provide borrowers and lenders a secure and equitable solution.<\/p>\n\n\n\n

The new fixed-yield loan model will offer “certainty for both borrowers and lenders with fixed rates and terms,” according to Anthony DeMartino, CEO of Trident Digital, in a Q&A with Cointelegraph.<\/p>\n\n\n\n

\n

\u201cIn a market with many unknowns, having clarity around the trade length and rate reduces unpredictability and market volatility, offering a more stable investment option.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

Traditional challenge mitigation<\/h2>\n\n\n\n

The press release states that the illiquidity and volatility of governance tokens <\/a>used as collateral have long been a long-standing challenge for accessing term debt in the digital asset space.<\/p>\n\n\n\n

Traditional onchain bond structures frequently “favored borrowers, leaving lenders exposed to significant risks without the potential for commensurate rewards.”<\/p>\n\n\n\n

\n

\u201cIn response to these challenges, Trident Digital, in collaboration with IntoTheBlock and TokenLogic, has developed a pioneering fixed yield loan where interest payments are directly tied to the protocol\u2019s revenue.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

Aave v3 Liquidity support<\/h2>\n\n\n\n

The release indicates that the Aave DAO has implemented an instance of Aave v3 to facilitate Ether-correlated assets as part of a collaborative initiative.<\/p>\n\n\n\n

The initiative entailed a partnership with Lido DAO to promote Liquid Restaking Tokens (LRTs) on Mellow Finance's Symbiotic restaking protocol.<\/p>\n\n\n\n

ITB's non-custodial smart contract suite of institutional decentralized finance (DeFi) solutions facilitates this fixed-yield loan, which secures 33,000 ETH for three months.<\/p>\n\n\n\n

Lenders receive aETH tokens as collateral following the provision of this capital to Aave v3.<\/p>\n\n\n\n

GHO stablecoin is live<\/h2>\n\n\n\n

Aave DAO's member-controlled community voted on July 2 to establish the GHO stablecoin\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> on the Arbitrum network.<\/p>\n\n\n\n

The DAO voted to launch the stablecoin on Arbitrum first to capitalize on its superior throughput and minimal transaction costs and launch it on other networks.<\/p>\n\n\n\n

Risk management factors and security considerations were the rationale behind deploying GHO on other networks in phases.<\/p>\n\n\n","protected":false},"excerpt":{"rendered":"

The Aave DAO (decentralized autonomous organization) has effectively deployed the first onchain fixed-yield loan in partnership with Trident Digital, IntoTheBlock (ITB), and TokenLogic. Cointelegraph received a press release stating that the $100 million product will provide borrowers and lenders a secure and equitable solution. The new fixed-yield loan model will offer “certainty for both borrowers […]<\/p>\n","protected":false},"author":12,"featured_media":89173,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[21199,21201,21200],"class_list":["post-89168","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-aave-dao","tag-fixed-yield-loan","tag-trident-digital"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/08\/AAVE.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/89168","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=89168"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/89168\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/89173"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=89168"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=89168"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=89168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}