The recent crypto boom has been marked by blockchain companies working to expand their appeal to mainstream consumers. That now includes Aave Labs, the developer behind a popular decentralized lending service, which on Monday announced plans to launch an app in Apple’s App Store and opened up a waitlist for interested users.
TL;DR
- Aave Labs is launching an app in the Apple App Store for high-yield crypto lending.
- The app offers interest rates of at least 5% and can be funded via bank account or debit card.
- Aave aims to simplify DeFi for mainstream consumers, making it accessible beyond crypto jargon.
- Aave Labs emphasizes the security of its protocol, citing a flawless record over five years.
Aave is well-known in crypto as a leading project in DeFi, or decentralized finance. By opening up the waitlist for the app, it seeks to offer a version of its services without the litany of lingo, such as “stablecoins” and “protocol,” that is common in crypto but that may be unfamiliar or offputting to outsiders.
Aave's latest offering functions similarly to a savings account, but provides a superior return. Individuals can achieve at least a 5% interest rate on their assets and have the option to fund their accounts via a bank account or debit card. This product incorporates stablecoins, which are digital currencies tied to assets such as the U.S. Dollar, alongside the Aave protocol.
With over $30 billion in deposits, Aave stands as one of the most established networks of its type, as indicated by data from the crypto analytics platform DefiLlama. While DeFi protocols generally offer higher interest rates on assets compared to traditional banks, they also present increased risks of hacks and lack government protection.
However, Stani Kulechov, who founded and leads Aave Labs, emphasized that the Aave protocol, and by extension the upcoming Aave app, remains secure, particularly as Aave has a flawless record of no exploits over its five years of operation. “There is a security on the actual market economics. And then there’s also security on the actual code basis,” he stated, highlighting the numerous audits conducted by various security firms on the software.
Wall Street and DeFi converge
As the gap between established financial institutions and crypto-focused startups narrows, Aave's app launch is anticipated. The prominent asset manager BlackRock has leaned into Bitcoin, while the fintech firm Stripe has embraced stablecoins, and the major bank JPMorgan Chase has consistently deployed novel blockchain offerings.
Meanwhile, crypto companies have sought to attract more mainstream users. The U.S. Crypto exchange Kraken has launched its own payments app and a slew of others are aiming to create their own bank-like products built with stablecoins, or cryptocurrencies pegged to underlying assets like the U.S. Dollar.
“Typically, DeFi has been accessible to very savvy, professional users,” Kulechov, CEO of Aave Labs, told Coins2Day. “The next step for DeFi is to bring more direct access for consumers.”
Stani Kulechov, Aave Labs' CEO, stands as a prominent figure in DeFi. He introduced the Aave protocol in 2020. Since its inception, he has broadened his DeFi ventures to encompass a crypto wallet, a decentralized stablecoin, and a decentralized social media protocol.
In October, Aave Labs acquired the stablecoin company Stable Finance for an undisclosed sum. “They had more of a consumer DeFi experience that helped our team to move faster and and improve our offering down the line,” said Kulechov.