Aave Arc: Bridging DeFi & Institutional Demand

Increasing comfort with digital assets, inflationary concerns, and repressed interest rates have led many investors to explore lending, borrowing, liquidity mining, and staking on DeFi protocols as an alternative means of generating yield. In hopes of capitalizing on this institutional demand, Aave announced that it will be launching Aave Arc. Aave Arc will provide private liquidity pools to investors, enabling direct access to decentralized markets. These liquidity pools will be separate from existing pools on Aave and require extensive KYC (know-your-customer) due to regulations that apply when offering products to institutions.