The banks are out of the bag: In a Tweet on Wednesday, Stani Kulechov, co-founder of decentralized finance money market protocol Aave, revealed that the Aave protocol has built a “private pool” for institutions to “practice” before getting involved with the DeFi ecosystem.
Earlier on Wednesday, a Twitter user posted an angry tweet directed at Aave’s official Twitter account, noting that his address had been “blacklisted” due to Anti-Money Laundering requirements:
In an interview with Cointelegraph, Aave’s head of institutional business development, Ajit Tripathi, confirmed that the protocol had designed a permissioned pool — the “private pool” description in Kulechov’s Tweet was a misnomer in that the pool will be on public chains, but have permissioned access — specifically for institutions. He characterized the purpose of the pool as educational.
“It’s a great solution to promote collaborative learning across cefi and defi,” Tripathi said.
He noted that the permissioned test pool is designed to be compliant with AML regulations and that all users would have to undergo Know Your Customer verification from relevant partners. Moreover, the pool could be coming to mainnet sooner rather than later:
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