Aave deploys DeFi protocol on BNB Chain

Aave deploys DeFi protocol on BNB Chain
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Decentralized finance (DeFi) platform Aave has deployed its money market protocol on the BNB Chain network as the blockchain expands its DeFi ecosystem.

In an announcement sent to Cointelegraph, the BNB Chain team said that Aave is joining the growing list of DeFi protocols on BNB Chain. The lending protocol is joining the likes of Uniswap and PancakeSwap to boost the DeFi ecosystem on the blockchain network.

With Aave’s deployment on BNB Chain, the network will have several DeFi lending protocols, including Ambit Finance and Venus. Apart from this, BNB Chain currently has liquid staking protocols, LP tooling, perpetuals and decentralized exchanges (DEXs). According to the team, it may also add restaking protocols to its DeFi ecosystem soon.

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BNB Chain’s DeFi ecosystem. Source: BNB Chain

BNB Chain said that Aave’s arrival on the network gives the BNB Chain community access to one of the industry’s leading DeFi lending platforms. The integration also allows Aave users to access the benefits of using BNB Chain, such as its lower fees. The team said that Aave users will also be able to access the liquidity on the FDUSD stablecoin, which is based on BNB Chain.

Apart from these, the BNB Chain Core Development Team told Cointelegraph in a statement that BNB Chain developers can also benefit from the new integration. “BNB Chain developers will now be able to launch applications that build on Aave liquidity, further expanding BNB Chain’s DeFi capabilities.” 

The BNB Chain team added that the integration will complement the current ecosystem by providing a lending platform to developers and decentralized applications (DApps). They said that Aave is a “user app” that can function as a building block for more complex DeFi applications.

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In addition, the BNB Chain community will also be exposed to new lending and borrowing options and increased liquidity as Aave’s DeFi platform launches on the network. Marc Zeller, founder of the Aave-Chan Initiative (ACI), said in a press statement to Cointelegraph that they are excited to welcome FDUSD to Aave v3 and launch Aave on BNB Smart Chain. Zeller explained:

“This integration opens up new possibilities for Aave users, and Aave DAO aims to be a key protocol in the BNB Chain ecosystem. We believe this addition will contribute to the overall growth and adoption of DeFi.”

Meanwhile, BNB Chain also highlighted that the Aave integration is part of its efforts to spur mass adoption by targeting decentralized applications, including DeFi protocols. On Jan. 31, BNB Chain published its market outlook, mentioning that DeFi is one of its key targets for 2024. Apart from DeFi, the chain will also focus on gaming, artificial intelligence (AI) and decentralization by increasing active validators.

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