DeFi News: AAVE AMM Market Launched With $UNI and $BAL LP Token Collateral
AAVE, the open-source defi protocol launched its Automated Market Maker (AMM) market today with the option for $UNI and $BAL LP tokens as collateral for liquidity pools. This would allow $BAL and $UNI LP token holders to provide liquidity and earn a share of swaps within a particular liquidity pool.
The firm also revealed that there would e significant synergies between Balancer and the Aave Protocol.
Today, users can begin depositing and borrowing crypto assets from the Aave AMM Liquidity Pool, enabling @Uniswap and @BalancerLabs liquidity providers to use their LP tokens as collateral in Aave Protocol 👀https://t.co/Gf0WZ6fWiy
— Aave (@AaveAave) March 16, 2021
The support for $UNI and $BAL LP tokens collateral would be launched in the first phase where a certain portion of both the tokens would be made available for different liquidity pools. The AAVE platform would also allow for $DAI, $USDC, $ETH, and $wBTC borrowing and use as collateral. The primary reason for Uniswap inclusion could be its significant daily volume and $4B of liquidity.
The firm revealed that it may add other liquidity markets to its platform in the second phase of its development depending on the success of the first phase liquidity pools.
AAVE to Use Multi-Market Approach For Better Security and Liquidity
The yield-farming phase at the peak of Defi rise was the most sought-after passive income method, allowing traders to put their LP tokens in liquidity pools and earn interest on the collaterized tokens. The new AAVE AMM market with several Liquidity pools would offer better security and risk mitigation.
The first phase of the project would launch with a total of 14 pairs that include,
- DAI/USDC
- WBTC/USDC
- DAI/WETH
- USDC/WETH
- AAVE/WETH
- LINK/WETH
- BAT/WETH
- SNX/WETH
- UNI/WETH
- YFI/WETH
- CRV/WETH
- MKR/WETH
- REN/WETH
- WITH/WETH
AAVE completed the development and launch of its Proof of Concept (PoC) automated market last year with Uniswap collateral support. Uniswap is the center of gravity of AMM protocols. Its robust, simple code and innovative model inspired actors across several blockchains.
- Peter Brandt Flips Bullish on Bitcoin, Ethereum, XRP, and XLM
- Binance to Compensate Users After Ethena’s USDe Depeg During Crypto Market Crash
- Tom Lee’s Fundstrat Predicts Ethereum Rally to $5,500 Following ETH ‘Bottom’
- Is the Bitcoin Top In? Raoul Pal Signals Higher Liquidity Cycle Despite Market Selloff
- Expert Says XRP ETF Approval Is ‘Getting Close’ As Issuers File Amendments
- PEPE Coin Price Reenters Historical Demand Zone as Whales Accumulate $5M— Can It Repeat Its 123% Rally?
- Bitcoin Price Prediction as Trump’s Tariff Shock Triggers $19B Liquidation
- Can $TAPZI Reach $1 In Q1 2026?
- Here’s Why XRP Price May Have a Zcash-Like Surge
- $TAPZI Price Prediction: What’s Ahead of the $TAPZI token Presale?
- Cardano Price Targets $2 as Hydra 1.0 Ignites New Era of Speed and Adoption
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
