Grayscale Launches Aave Fund

Aave has become one of the largest cryptocurrency lending protocols by total value locked.

Grayscale has started a new fund that offers exposure to Aave’s AAVE token, the asset manager said Thursday, in what has been a series of novel products from the crypto asset manager.

Aave is a decentralized lending platform based on the Ethereum blockchain that offers automated cryptocurrency loans using other tokens it owns as collateral. It also allows users to lend out their cryptocurrencies to earn interest.

While the platform’s native token has a market cap of $2.3 billion — a relatively small figure compared to most well-known tokens — the protocol has become the largest cryptocurrency lending protocol by total value locked (TVL), according to data from DeFiLlama.

“Grayscale Aave Trust offers investors exposure to a protocol with the potential to revolutionize traditional finance,” Grayscale head of product and research Rayhaneh Sharif-Askary said in a statement.

“By leveraging blockchain technology and smart contracts, Aave’s decentralized platform aims to streamline lending and borrowing while removing middlemen and reducing reliance on human judgment,” he said.

#AAVEUSDT⚡️⚡️ #AaveProtocol #GRAYSCALE #BinanceSquareFamily #HotTrands $AAVE