Save, Earn & Spend with Monolith powered-by the Aave Money Markets
Today is a day our community has been looking forward to for a very long time. The day we begin to integrate Aave into the Monolith wallet!
Not clear yet on what Aave is and what it enables you to do? No problem, below we unpack step by step what Aave is and what it means to you.
What is Aave?
Aave is an innovative decentralised finance protocol enabling users to borrow and lend ETH & ERC20 tokens. The platform has been growing steadily since its launch and recently celebrated the total amount of locked value rising past $1.5 billion making it the biggest DeFi protocol in terms of the total value of assets deposited.
What makes Aave special is how friendly the user experience is. Aave has delivered several improvements from the main existing alternatives available at the time of the launch:
- 1:1 equivalence | When you deposit a token on Aave, you get an equivalent aToken at a 1:1 rate representing your position (e.g.: 1 DAI <-> 1 aDAI).
- Dynamic interest | With Aave, the interest is paid automatically. Once you’ve deposited your tokens, the balance grows without any further action required from you.
- More sources of returns | Aave offers a new type of loan- so-called ‘flash’ loans. They enable users to borrow without having to supply collateral. You can read more about it here, but simply put, flash loans potentially add another revenue stream for users depositing tokens on Aave.
Lending and borrowing on Aave is not devoid of risks, most notably the risks of smart contract failures or economic attacks. The Aave team is one of the most pro-active in the space when it comes to both communicating on and hedging these risks.
Make sure you are informed about the risk model for Aave before interacting with the service. The Aave Risk Documentation is the best starting point on the matter.
Though what’s described above is quite novel, it only represents the first iteration of Aave’s offering. Recently, they have released a few more exciting features, namely Credit Delegation, and its highly anticipated protocol update — Aavenomics:
Here at Monolith, we’ve been following Aave since its inception. It’s a great project with some of the sharpest minds in the space involved. Internally, we’ve always had a view that as soon as we could ‘show them some love’ we would, so we are happy to do so today!
aDAI is now spendable on the Monolith cards
As of today, aDAI is now fully supported in the Monolith wallet, and can be used to top-up the Monolith cards!
For those who are not familiar with us yet — it means aDAI just became spendable anywhere in the world, for a capped 1% fee (paid to the TKN Community Chest); and the whole operation takes a minute.
Everyone is welcome to join in, and if you don’t have any aDAI, what a great excuse to take advantage of our in-app DEX integration?
Aave is the first step in our DeFi journey
We are delighted to be the first company to increase the so-called ‘moneyness’ of aDAI by making it spendable. As a team which is passionate about building a non-custodial future, we are thrilled to enable our customers to engage with Aave — another project pushing the boundaries of decentralised finance with every new release.
We are proud to have delivered the first live Ethereum contract wallet paired with a Visa Debit Card. It was only logical for us to be the first to support aDAI making it spendable anywhere.
This represents the first step in a long journey to harness the best of DeFi, straight from the Monolith wallet. Expect more protocols and tokens as we grow.
Stay tuned & get onboard early: our community is at the heart of everything we do!