$70B DeFi Protocol Aave Launches on Aptos Amid Expansion

The launch comes as Aave positions itself to take advantage of “new collateral markets,” such as liquid staking tokens (LSTs). LSTs are a type of token given to users who stake assets, contributing to network security. These tokens can be used for DeFi activities such as lending or trading.

“By expanding to Aptos, Aave increases access to lending, borrowing, and savings to a new, fast-growing community,” an Aave spokesperson told Cointelegraph.

Currently, Aptos has a total value locked of $857 million, according to DefiLlama. Aave enters an ecosystem with few DeFi protocol competitors. Of the top five protocols listed by DefiLlama, only one has a total value locked of over $1 billion: PancakeSwap at $2.1 billion.

Regulators, indexes weigh DeFi moves

Decentralized finance is a sector of crypto that has blossomed in recent years, driven by the utility of accessing mainstream financial services without intermediaries. In DeFi, users can engage in many activities, including lending, market making, investing and trading.

It has also caught the attention of indexes and regulators recently. On Saturday, it was revealed that the S&P Dow Jones Indices is considering licensing and listing tokenized versions of its popular benchmarks on DeFi protocols and exchanges.

Last weekend, the US Treasury issued a notice soliciting input on the potential addition of digital ID verification for DeFi, a tool the entity says would be used to fight crypto crime. However, on Wednesday, Federal Reserve Governor Christopher Waller told policymakers and banking stakeholders that there is nothing to fear from DeFi.