Aave DAO is voting on a proposal to launch a white-label model of its lending protocol on Kraken’s Ink blockchain, marking a notable shift in how decentralized finance integrates with centralized platforms.
In accordance with a DAO proposal initiated on July 17 through Snapshot, the deployment will use Aave’s sensible contracts underneath a brand new model managed by the Ink Basis. The initiative has obtained overwhelming help from the Aave (AAVE) DAO, with over 790,000 votes in favor as of press time, forward of the proposal’s July 21 deadline.
It marks Aave’s first white-label deployment and a strategic partnership designed to expand adoption of its know-how whereas introducing new income streams via a revenue-sharing settlement with Ink.
The lending platform shall be constructed on Ink, an Ethereum (ETH) layer-2 community that’s a part of the Optimism (OP) Superchain. Ink will present Kraken customers with onchain loans via Aave’s core lending infrastructure, which shall be centrally managed by the Ink Basis.
The transfer combines centralized oversight with DeFi structure, offering a regulatory-friendly framework which will draw institutional customers and function a gateway for Kraken’s present consumer base to extra simply entry DeFi providers.
To encourage adoption, the Ink Basis plans to distribute 4% of its INK token provide to early customers, whereas the Aave DAO will contribute AAVE tokens and its GHO stablecoin to seed liquidity.
The purpose is to draw no less than $250 million in deposits to the platform, a big goal contemplating Ink’s present whole worth locked is underneath $10 million, far under rivals like Coinbase’s Base, which exceeds $3.7 billion.
The deployment gives a possible win-win. Ink will obtain a flagship software to develop its layer-2 presence, Kraken will develop its product suite with a dependable DeFi backend, and Aave will diversify its income streams with out compromising its core decentralized protocol.
Nonetheless, the Aave neighborhood is now debating the governance implications and trade-offs of decentralization because of the Ink Basis’s centralized management. If authorized, the platform will bear a radical audit earlier than launch, and Ink will oversee the user-facing instruments.
For at least a 12 months, Ink would be the solely white-label deployment accomplice, because of the exclusivity settlement.
