Reading time saved: 2 minutes
3 replies, 1779 views, 4 likes
OpenSky Finance, a decentralized NFT lending protocol, has applied for a grant from the AAVE community to integrate with AAVE's money market, aiming to transition their money market from Compound to AAVE protocol smart contracts. The integration is expected to mutually benefit both parties, with AAVE gaining substantial TVL and OpenSky boosting user confidence due to AAVE's proven resilience.
OpenSky Finance, a decentralized liquidity protocol for NFT lending, has proposed a grant application to the AAVE community, as shared by Euris from OpenSky. The aim is to integrate with AAVE's money market as a core component of their NFT lending dApp, which already has a working product on the Rinkeby testnet. If the grant application for 15,000 USDT or AAVE equivalent is accepted, OpenSky plans to transition their money market from previous smart contracts with Compound to new AAVE protocol smart contracts1.
OpenSky's lending and liquidation process allows DeFi users to deposit their crypto into selected pools on their favorite NFT market(s). Once a pool has sufficient liquidity (Total Value Locked or TVL), NFT HODLers can stake their NFTs into the pool and borrow up to half of the TVL for a fixed period. If the loan matures without repayment of the principal and interest, it will be classified as 'overdue' and liquidated using Rarible's 'Timed Auction' feature1.
Euris argues that the integration of AAVE and OpenSky will be mutually beneficial. For AAVE, it will add a substantial amount of TVL to the AAVE protocol and introduce OpenSky NFT HODLers to DeFi and AAVE. For OpenSky, it will boost user confidence to deposit large quantities of crypto into their lending protocol, given AAVE's strong Lindy effect and proven resilience against hacks1. Fig from the AAVE community has welcomed Euris and asked them to submit an Aave Grants application2, which Euris confirmed they had already done3. They also revealed that they had recently received a grant from Rarible DAO to integrate their Indexer and Timed Auction features into their dApp4.
Posted 2 years ago
Last reply 2 years ago
Summary updated 2 months ago
Last updated 03/12 08:01