The Aave community has overwhelmingly approved a proposal to license a centralized version of the Aave v3 protocol for deployment on Kraken’s Ink blockchain, securing a 99.8% consensus vote. This strategic move aims to expand institutional lending capabilities and create new sustainable revenue streams for the ecosystem.
The partnership establishes a specialized implementation of Aave v3 on Kraken’s regulatory-compliant layer-2 blockchain and introduces a revenue-sharing model guaranteeing the Aave DAO a minimum of 5% of borrow volumes. To accelerate adoption, Kraken has committed over $250 million in incentives designed to bootstrap initial liquidity on the Ink blockchain.
Despite recent fluctuations in total value locked (TVL), Aave maintains its position as the second-largest DeFi lending protocol. This collaboration seeks to strengthen institutional adoption by bridging decentralized finance with regulated frameworks, leveraging Kraken’s infrastructure to enhance compliance and accessibility for traditional financial institutions.