AAVE has made another move, but I’m more interested in the actual demand behind it
I’ve been keeping an eye on AAVE’s fundamentals lately.
Yesterday, I saw a new proposal: Aave plans to add USAT, a regulated U.S. stablecoin, to V3 and V4.
I think this is worth watching.
Not because it means support for one more stablecoin, but because assets like this could potentially attract more institutional capital into DeFi lending markets in the future.
When I was researching AAVE before, I always felt that what would truly determine its long-term value was whether actual borrowing demand could continue to grow.
Adding more assets simply expands the potential market.
But how many people will actually deposit and borrow, and how much protocol revenue will that ultimately generate? Those are the things that still need to be verified.
And for now, this is only a governance proposal—the integration hasn’t been completed.
So I won’t treat it as a realized positive catalyst just yet.
For AAVE, I’d rather see real borrowing demand grow than simply see the number of supported assets increase.
There’s a big difference between the two.
$AAVE #DeFi
I’ve been keeping an eye on AAVE’s fundamentals lately.
Yesterday, I saw a new proposal: Aave plans to add USAT, a regulated U.S. stablecoin, to V3 and V4.
I think this is worth watching.
Not because it means support for one more stablecoin, but because assets like this could potentially attract more institutional capital into DeFi lending markets in the future.
When I was researching AAVE before, I always felt that what would truly determine its long-term value was whether actual borrowing demand could continue to grow.
Adding more assets simply expands the potential market.
But how many people will actually deposit and borrow, and how much protocol revenue will that ultimately generate? Those are the things that still need to be verified.
And for now, this is only a governance proposal—the integration hasn’t been completed.
So I won’t treat it as a realized positive catalyst just yet.
For AAVE, I’d rather see real borrowing demand grow than simply see the number of supported assets increase.
There’s a big difference between the two.
$AAVE #DeFi