Aave has long been one of the most competitive DeFi protocols in the world. However, a $ 6 billion decline in Total Value Locked (TVL) earlier this month pushed it down from # 1.
Given the slow pace of recovery, Aave took up the idea last week of further improving the DeFi room with the help of institutions.
New AAVE and Arc
AAVE Arc is essentially an isolated marketplace and sandbox environment for companies to experience DeFi in a holistic way and to use it in the future for their customers and users. In this way, Aave aims to help people understand the effectiveness of decentralized governance and enforcement protocols that initially rely on automated intelligent control.
It is noteworthy that Arc is still managed by Aave Governance, but here the “whitelister” plays an important role.
They are the guardians in the Arc market, providing all of the KYC (Identity Verification) and referral services to the users. In addition, they also ensure the sustainability and safety of Arc by examining what should be approved for AIP. In this way, you ensure that compliance obligations are not impaired.
According to the news, Fireblocks LLC was the first company to register as a whitelister. They are known for their MPC wallet for organizations that support AAVE V2.
This idea is a huge step forward for AAVE and DeFi in general. Especially because, if successful, we can expect a number of organizations to develop different use cases of the technology and help DeFi achieve its purpose.
However, this announcement has not yet had a major impact on the network. AAVE continues to underperform as the altcoin is stuck in a two-month declining wedge structure and is down 21% this month.
AAVE price promotion | Source: TradingView
This has resulted in almost 75% of all AAVE investors losing money. And with volatility at its lowest level in a long time, the recovery will be slow.
AAVE address profitability | Source: Intotheblock
Fortunately, the network continues to receive support from investors. They are still active and have an average trading volume of around $ 100 million.
AAVE trading volume | Source: Intotheblock
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According to AMBCrypto