Aave Integrates METIS as Collateral on Metis Layer 2 Network

By Chainwire

Toronto, Canada, August 21st, 2024, Chainwire

Aave, a leading lending protocol in decentralized finance (DeFi), is integrating METIS as collateral on the Metis Layer 2 (L2) network. This strategic development will broaden the utility of METIS tokens and enhance capital efficiency for Aave users.

With METIS now supported as collateral on Aave, users on the Metis network can leverage their METIS tokens to access borrowing opportunities. 

The platform will offer a 30% loan-to-value (LTV) ratio, allowing users to borrow assets up to 30% of their total METIS collateral. For example, if a user supplies 100 USD in METIS value as collateral, they can borrow up to 30 USD (30%) worth of other assets available on Aave.

Enhanced Capital Efficiency with METIS Collateral

The integration of METIS as collateral introduces enhanced capital efficiency for users. The 30% LTV ratio allows individuals to unlock liquidity while retaining ownership of their METIS tokens, offering flexibility in capital management. Additionally, utilizing METIS as collateral provides users with access to various financial tools and liquidity options within the Aave ecosystem, potentially optimizing their asset management strategies.

Furthermore, transactions on the Metis network are faster and more cost-effective than those on the Ethereum mainnet, boasting transaction speeds and costs that are among the best in the industry. This cost efficiency enhances the accessibility and economic viability of borrowing and lending processes, making it easier for users to navigate their financial options.

Leveraging METIS as collateral, users will be able to borrow any of the following assets:

• USDT
• USDC
• DAI
• ETH

The Metis and Aave teams are working closely to bring this feature to life soon. The rollout will depend on several factors, including integration testing and market conditions.

Integrating METIS as collateral on Aave represents a major step forward in DeFi capabilities on the Metis L2 network and the Aave platform. With improved capital efficiency and access to various financial instruments, users can look forward to new opportunities for managing their assets.

About Aave

Aave is a leading decentralized lending protocol that allows users to lend and borrow assets permissionlessly. 

With over $11 billion in total value locked (TVL), Aave continues to be one of the most prominent protocols in the DeFi space, offering innovative solutions for maximizing capital efficiency and enabling easy access to liquidity.

About Metis

Metis is a decentralized Layer 2 network that enables users to easily build, deploy, and manage DeFi products without navigating the complexities of smart contracts. 

Through its novel hybrid consensus mechanism, the Metis network offers high scalability, fast transaction speeds, and low costs.

To learn more about the Metis ecosystem, visit the official website and connect with the community on all its social platforms.

Contact

Jamie Kingsley
Metis
j.kingsley@theprgenius.com

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