Decentralized finance protocol Aave has been granted a license to operate as an Electronic Money Institution (EMI) by the UK regulator, while the platform has become a favorite among DeFi users.
Aave, a protocol DeFi based Ethereum, became one of the first decentralized finance protocols to obtain an Electronic Money Institution (EMI) license from the UK Financial Conduct Authority. Likewise, after this news was announced, the total value locked within the platform surpassed that of all DeFi projects in the market, reaching $1,53 billion in value locked (TVL) and positioning itself as the number 1 platform within the DeFi ecosystems, according to data from the platform. DeFiPulse.
The approval of the license to operate as an Electronic Money Institution (EMI) allows Aave to become a company that can provide various payment services and issue electronic money in a regulated manner, as well as allowing the project to expand and attract new potential investors to the platform. It should be noted that this open-source digital platform was designed to allow users to manage digital assets and lines of credit and loans without custody.
On the other hand, Aave’s exponential growth in total value locked (TVL) exceeds 28.500% since its launch in late 2017. This protocol started with 5 million dollars locked in the platform for the first month of launch, and currently has more than 1,53 billion.
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Aave Protocol Features and Growth
DeFi Pulse shows that the digital platform is experiencing incredible growth thanks to its multiple features and functions. Aave allows users to borrow or lend digital assets without intermediaries and without custody. In addition, the platform also allows for lending flash loans, which are unsecured loans where the loan and repayment must be made within the same Ethereum transaction. Likewise, Aave has a digital token of governance known as LEND, which allows users to participate in voting regarding proposed changes to the protocol and proposals for the integration of new functions.
The implementation of flash loans within Aave breaks down the barrier to entry for users to the platform, as these loans can be made without collateral, allowing many more users to have access. This type of lending is one of the most important features that has contributed to the growth of the platform. Now, Aave has more than $1,53 billion locked, and in the last 90 days it shows a simply exceptional uptick.
Source: DeFi Pulse
Lastly, Stani Kulechev, CEO of Aave, assured that the approval of the license by the United Kingdom regulator will allow the platform to further consolidate and continue its incredible growth.
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