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Launch of Permissioned Platform Aave Arc by Aave Becomes Pivotal Moment in DeFi

Stephanie Williams

Summary: Today, a permissioned form of the renowned lending platform DeFi, known as Aave Arc, has been released. An institutional cryptocurrency custody firm, Fireblocks, was the very first whitelister of Aave Arc.  Being placed on a whitelist entails that an entity (Fireblocks) behaves like a “guardian,” granting specific permissions to Ethereum wallet addresses that have been ...

Today, a permissioned form of the renowned lending platform DeFi, known as Aave Arc, has been released. An institutional cryptocurrency custody firm, Fireblocks, was the very first whitelister of Aave Arc.  Being placed on a whitelist entails that an entity (Fireblocks) behaves like a “guardian,” granting specific permissions to Ethereum wallet addresses that have been given by each user.  The entire process of Aave Arc’s whitelisting is taken care of by third-party entities via community governance voting.  The introduction of Aave Arc, according to Fireblocks co-founder and CEO Michael Shaulov, will cause some of the world’s biggest organizations to start partaking in DeFi.

“The launch of Aave Arc is a pivotal moment in DeFi," informed Rich Rosenblum, co-founder and president of GSR. "As a result of Fireblocks making institutional access to DeFi pools possible, companies like ours are able to create new products for our customers."

According to data from DeFi Llama, Aave has a current TVL (Total Value Locked) of $14.5 billion.  October 2021 is when Aave first introduced a whitepaper regarding the development of Aave Arc.  In a Twitter comment on November 18, 2021, they wrote, “DeFi represents a powerful wave of innovation that has so far been inaccessible to traditional financial institutions.  Today that changes!”  

Since Fireblocks will be the very first whitelister of Aave Arc, it will run due diligence on organizations that are considering granting or cryptocurrency assets through the platform.  In a proposal that was created in September 2021 by Rob Salman, head of business development for Fireblocks, a user known as “salmanblocks” requested the addition of Fireblocks as the first whitelister for Aave Arc.  

“Fireblocks’ R&D, compliance and legal teams have developed a new whitelister framework for permissioned DeFi. This framework meets both enterprise-grade requirements for accessing DeFi and adheres to Aave Arc’s whitelister governance criteria,” salmanblocks wrote in this proposal.

Aave founder, Stani Kulchov, made a statement to CoinDesk that indicated that this particular proposal could be the first of a series of whitelistings.  

“Fireblocks aims to be the first whitelister and would add new whitelisters as well over period of time,” Kulchov said in a written statement in an interview on Telegram. “Whitelister can be anyone that fulfills similar compliance requirements that Fireblocks initiated the market with.”

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Link: Launch of Permissioned Platform Aave Arc by Aave Becomes Pivotal Moment in DeFi   [Copy]
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