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The discussion focused on the potential of Aave launching a stablecoin, pegged to fiat deposits from different regions, to serve as an efficient fiat on-ramp for the Aave lending protocol and the entire crypto market. While the idea was generally supported, concerns were raised about feasibility and the technological development required.
The discussion began with Depressedape's proposal of Aave launching a USDC-like stablecoin, pegged to fiat deposits from different regions, following Aave's recent acquisition of an EMI license in the UK. This stablecoin could serve as an efficient fiat on-ramp for the Aave lending protocol and the entire crypto market, and could also serve as a tool for a decentralized savings account. The idea was met with support, but also concerns about feasibility and whether Aave has a natural advantage in the fiat stablecoin space.
Stani and Zer0dot both supported the idea of issuing stablecoins or aTokens in L2 when taking deposits in fiat, with Stani suggesting that the underlying fiat could be deposited into liquid and low volatility products in TradFi, tokenized, and used to bring more liquidity and yields for the Aave protocol. Zer0dot suggested finding a way to solve the points of failure present in other major stablecoins.
Depressedape further suggested leveraging yields from TradFi alongside DeFi, which could create an attractive savings account on AAVE and provide opportunities for the Aave and crypto community to direct a part of the yields to a DAO responsible for contributions to socially relevant issues. They also proposed a stablecoin design that relies on both CBDCs and a Maker-like system, which could be more resilient than USDC or DAI.
Defifrog agreed with Depressedape's idea and suggested creating "vaults" with any existing collateral to mint AaveUSD, which could increase AaveUSD volume and lower the barriers to entry for newcomers. Depressedape responded by stating that the main hurdle is the technological development, as the feature would be popular among users and Aave stakeholders.
In conclusion, the discussion revolved around the potential of Aave launching a stablecoin, with various suggestions and concerns raised. The idea was generally well-received, with the main hurdle identified as the technological development required.
Posted 3 years ago
Last reply 3 years ago
Summary updated 2 months ago
Last updated 06/12 00:44