Aave announced that it has become the first DeFi lending protocol to surpass $50 billion in net deposits, marking a strong growth in the onchain sector since the end of October 2023.
Aave is a decentralized financial platform that allows users to lend and borrow cryptocurrencies without intermediaries. Lenders deposit assets such as stablecoins or BTC/ETH into liquidation pools to earn interest, while borrowers must collateralize assets to borrow, with interest rates adjusted according to supply and demand.
Net deposits are calculated by the total assets provided minus the total amount borrowed, including activities on 34 blockchains such as Ethereum, Arbitrum, Avalanche, and Base. Founder Stani Kulechov declared: "Towards billions", emphasizing that traditional financial and fintech companies are gradually using Aave as a lending infrastructure.
In 2021, the project launched Aave Arc, a KYC and anti-money laundering verified version serving financial institutions. Aave Arc was previously used in Project Guardian – a project by the Monetary Authority of Singapore aimed at bringing real assets onto the blockchain. Recently, Aave has continued to push its RWA strategy through the Horizon program.
The price increase of the crypto market and attractive stablecoin farming interest rates have also contributed to growth. Aave supports Circle's USDC and PayPal's PYUSD as collateral assets, helping to connect offchain liquidation with DeFi.
The $50 billion milestone coincides with the revival of the entire DeFi sector, with the total TVL of the market reaching nearly $120 billion – the highest level since December 2024. Lending on Ethereum alone accounts for over $63 billion, of which Aave holds about $29 billion, equivalent to nearly half – confirming its position as the largest DeFi lending protocol currently.
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The article Aave reaches $50 billion in total net deposits on the platform first appeared on CoinMoi.
