Top Swiss finance firm CrescoFin, with services ranging from insured savings to conventional financial services, has disclosed plans to launch a money market.
The money market will be built on the Aave blockchain in conjunction with world-renowned oracle platform Chainlink. In an official blog post, CrescoFin threw more light on the need for a money market. Some of the reasons stated include:
- It would help lessen volatility as well as boost composability.
- A high influx of conventional money firms is expected to flow into Aave.
- It will help bring insured savings to DeFi protocols.
- Lastly, Aave will facilitate top-notch security on the platform. It is also important to note that protocol security is a requirement to successfully attract institutional-grade investors.
CrescoFin is a registered Swiss firm that boasts of higher interest rates than conventional banks. Due to its traditional background, the firm is quite compatible with traditional financial institutions.
Details on Aave Insured Savings
According to CrescoFin, the Aave open-source protocol is the best way to bring to life its money market tech. The Swiss-based platform plans to achieve this by tokenizing collateral and also providing lending opportunities to willing investors.
An increase in collateral on the platform will result in the minting and distributing of more tokens. Chainlink will provide the platform with reliable price feeds and proof-of-reserves. Tokens will have to be burned for withdrawal to take place.
Advantages of the Money Market
Major benefits of the platform include:
- The platform will provide investors with important services like insured savings. Notably, this service is not yet available on DeFi protocols.
- It is also expected to attract a considerable amount of liquidity even as the DeFi sphere expands.
- Lesser volatility.
- Better interoperability between Aave and other money platforms.
Aave is well known for its top-notch focus on security. According to CrescoFin, security and risk management are major focuses of the firm. Especially as it is a regulated firm with deep roots in the traditional finance ecosystem. Venturing into the DeFi space, CrescoFin required a protocol that was 100% focused on security. According to the Swiss firm, Aave provided that assurance.
CrescoFin plans to serve as a reliable link between traditional finance and the fast-rising crypto space. Aave will also serve as a major gateway to the DeFi sphere. Interestingly, DeFi protocols this year recorded an unprecedented increase in transaction volume. In 2020 Q3 alone, about $8 billion was locked in DeFi protocols worldwide.
According to CrescoFin, Aave was deemed a reliable platform to house its money market for two major reasons, namely:
Its security audits – Aside from being totally security conscious, the platform has also undergone several external security audits.
Network protection – Aave is also designed to ensure the protocol is secured at all times.
CrescoFin believes that an insured money market will attract investors (individual and institutional). Due to its focus on regulatory compliance, it will also attract traditional investors via its regulated route.
Analysts believe that a high influx of institutional-grade investors is expected in the DeFi space in the near future. Aave also hopes to be at the forefront of this influx.
At the time of writing, Aave was trading at $71.80, with a market cap of $849,952,852 and a 24-hour trading volume of $200,394,290.
Find out more about the open-source platform on the Altcoin Buzz YouTube channel.