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- Aave is planning to list stETH and wstETH on V3.
- Aave offers borrowing and lending of more than 20 cryptos which offer wide varieties to users.
Aave, a globally popular cryptocurrency protocol, recently published a proposal detailing the listing of Lido-wrapped stETH,wstETH, to its V3 deployment on the layer 2 network(L2).
The new strategy introduced by Aave permits users to take over Ethereum, or ETH, against their stETH. It is capable of doing that by depositing ETH and borrowing stETH from the Lido protocol, then going to another platform, like Aave, and loaning stETH in exchange for ETH again. But now, Oasis will let users with ETH get into the recursive strategy in just a single transaction by using the Aave protocol.
Lido Finance is known as one of the biggest merge staking facilitators; it has launched two layer-2 networks on Arbitrum and optimism, a move it told futhure to enhance access to Ethereum staking while lowering gas fees.
Lido finance offers Stake rewards for other interfaces like Solana, Polkato, and Kusama, and the value of stETH is pegged by Ethereum in the ratio of 1:1.
While writing this article, AAVE is trading at $61.78 with a 24-hour volume of 41.26M, and as per data, the AAVE highest traded at $666.86 on May 18, 2021; the token holds 48 positions in the market as per market cap.
To boost security, Aave V3 has added an “isolation mode” that reduces the degree to which the latest and unestablished assets can be used as collateral for loans.
Aave decided to add wsETH to its V3 deployment on optimism, inspired by the success enjoyed by its stETH reserve on Aave V2.
Before the FTX collapse in May 2021, Lido began to expand. On Nov. 10, the fees reached a record high as fee income almost surpassed $2.6 million. 10% of all Ethereum staking rewards from user deposits go to the protocol.
The Lido protocol now has 150,000 unique depositors, showing that Lido is still drawing in new users. Following the weakness of centralized “earn” programs caused by their exposure to FTX, Genesis, BlockFi, and other companies, there has been an increase in unique deposits.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
