AAVE: Can It BEAT The Bear Market!? Watch This Crypto!!

Decentralized finance protocols and Stable coins are quickly becoming the Number one targets for regulators around The world and that means only the most Decentralized and innovative will Survive Ave has been raising the bar for Decentralization and innovation since it Began and now it’s looking to raise the Bar even higher with its decentralized Social media protocol and its upcoming Stablecoin Today i’m going to briefly explain what Ave is and how it works bring you up to Speed on some of the project’s most Important updates and tell you why arve Is on track to become a top 10 Cryptocurrency [Music] Before we talk about this crypto ghost There’s a disclaimer i need to post if i Gave you any financial advice i would be Toast education and entertainment are The only skills i boast please contact a Financial advisor if your portfolio is Looking gross If this is your first time sitting in The crowd my name is guy and this is Cryptoground my mission is to create the Highest quality crypto content that can Be found coins tokens news reviews and Other topics that are profound So if you plan on sticking around Subscribe to the channel and give that

Notification bell a pound Okay that’s it for my vows let’s see What arvey has been up to and why it’s About to become even more renowned If you’re unfamiliar with arve here’s What you need to know Ave is a decentralized finance protocol That was founded in 2017 by stani Kolechov Back then the project was known as Ethlend and it rebranded to arve in 2018. Ave was built by a software company Based here in london called ave limited Where stanley currently serves as ceo In contrast to most crypto projects Arva’s development is not coordinated by A non-profit and this is basically Because arve is community driven rather Than company driven Are they raised over 16 million dollars In a 2017 ico and has since raised an Additional 33 million dollars across Various funding rounds from various Crypto vcs The rv protocol that exists today was Released in early 2020 and it has seen Numerous improvements since that time Namely the rv v2 release at the end of 2020 and the ave v3 release earlier this Year More about that later Now although rv initially launched on Ethereum the protocol has since expanded

To half a dozen other blockchains Including avalanche the polygon pos Chain ethereum layer 2s arbitrarum and Optimism Phantom and harmony It should come as no surprise then that Rv is currently the second largest d5 Protocol by total value locked according To d phi And continues to see around 10 000 Monthly users according to dap radar This is despite the crypto bear market Mind you Ave’s popularity boils down to the power Of its protocol which lets you borrow And lend cryptocurrency without kyc or a Credit score and without a time limit on Loans or deposits If you’re wondering how this is possible The answer is basic economics user Incentives and over collateralization To borrow cryptocurrency on rv you need To deposit a dollar amount of crypto That’s worth more than the dollar amount Of crypto you’re trying to borrow this Is called an over collateralized loan The interest rate you pay on the crypto You borrow is determined by the supply Of and demand for the token you’re Borrowing in the protocol with a lower Supply of and or higher demand for the Token corresponding to a higher interest Rate a higher interest rate incentivizes Borrowers to borrow less of that token

And incentivizes lenders to deposit more Of that token into the protocol Naturally the interest being paid on Borrowed tokens goes to the lenders of Those tokens and on rv borrowers can Even opt to pay a higher stable interest Rate As i mentioned a few moments ago there’s No time limit for loans but there is a Catch Borrowers must always make sure that the Dollar value of the crypto they used as Collateral is worth more than the dollar Value of the crypto they borrowed plus The interest they owe on the crypto they Borrowed If borrowers fail to maintain sufficient Collateral either because the dollar Value of the collateral falls or because The interest rate on that collateral Increased too much then the crypto they Used as collateral is liquidated i.e Sold to ensure the protocol remains Solvent to ensure that lenders can Always withdraw any tokens they deposit Into rv are put into pools the Assumption being that the lenders will Not withdraw all their crypto at the Same time and remain incentivized by Interest rates to ensure the protocol Has enough tokens to meet borrower Demand To ensure that the protocol always Remains solvent regardless of market

Volatility holders of the rv token can Stake it in the protocol to earn a Percentage of protocol fees In exchange the rv tokens being staked Are liquidated in the event of a Shortfall Are they staking rewards are currently 7 Per year Now besides being used to secure the rv Protocol the rv token is also used to Govern the rv protocol which is about as Decentralized as d5 protocols can get Case in point rv has also hosted a Version of its front end on the Interplanetary file system or ipfs Meaning it cannot be censored Now this really only scratches the Surface of all the things rv can do and If you want to learn more about that you Can check out our previous video about The project using of course the link in The description Now it’s been exactly six months since i Last covered ave and it’s safe to say That a lot has happened since then In february ave passed its first Cross-chain governance proposal with rv Holders voting for changes to the rv Protocol on polygon using the rv Protocol on ethereum The rv team celebrated this as a huge Step for crypto governance and i reckon That’s an understatement Ave also introduced its decentralized

Social media protocol dubbed lens Protocol which makes it possible for Users to own their content on chain and Interact with their contacts using Multiple front ends each with its own Aesthetic and content moderation policy If any According to crunchbase arve even saw Another funding round in february though I couldn’t find any details about how Much was raised nor who all the Investors were if you happen to know Drop a comment down below In march the rv community approved the Launch of ave v3 on half a dozen Blockchains Are they v3 introduced the ability to Move assets to rv protocols on other Blockchains without a cross-chain bridge And the ability to borrow up to 95 of The same cryptocurrency being used as Collateral In april cryptocustodian fireblocks Partnered with fidelity national Information services or fis to bring d5 Protocols within arms reach of over 6 400 institutional investors This is significant because fire blocks Has been working closely with arve on Its rv arc platform which is built for Institutions Ave was also one of the many crypto Projects to sign an open letter opposing A proposal from the european union which

Would require crypto holders to provide Detailed information to regulators about Every single crypto transaction be it Peer-to-peer peer to protocol or Otherwise Are they founder stanley kolechov even Managed to get banned from twitter for Joking about becoming twitter’s interim Ceo after tesla ceo elon musk announced His planned acquisition of the social Media platform Stanley was reinstated shortly Afterwards and his first tweet back was Almost the exact same joke In may arve officially launched lens Protocol on polygon Unfortunately lens protocol apparently Remains limited to signatories of the Lens open letter select developers and Hackathon participants Even so multiple front ends have been Created some of which leverage r-weave For their storage more about r-weave in The description i digress In june jp morgan announced that it was Working on ways to tokenize real-world Assets for use in d5 protocols though It’s likely these assets will be limited To use in permissioned versions of d5 Protocols and not available in the Public versions of the d5 protocols that You and i use Celsius also started withdrawing Hundreds of millions of dollars of rv

Tokens shortly after it paused user Withdrawals on its platform many were Worried that celsius’s supposed Insolvency could have a negative impact On the rv protocol but so far celsius Has managed to pay down its debts on our Bay Ave was also almost affected by lido Finance’s st eth This was being used as collateral to Borrow more eth which would then be Deposited into lido for more st eth and So on and so forth until st deviated From its peg causing lots of concern for The rv community It looks like that got sorted out as Well Given all the concerns around celsius at The time maker dao decided to block Arvey’s ability to mint more of make Dow’s die stable coins supposedly to Prevent any liquidation issues related To celsius which had borrowed 100 Million die using st eth Now if all of this wasn’t bad enough for Arve harmony’s horizon bridge was hacked For 100 million dollars something which Seems to have affected rva’s v3 Deployment on the harmony blockchain Luckily there were only a few million Dollars in total value locks there According to d file armor Then earlier this month crypto privacy Project aztec network launched the zk

Money protocol making it possible to Interact with d5 protocols like ave in a Private way using zero knowledge proofs Glad to see that some projects still Care about financial privacy Then just last week the rv team Announced that it tabled a proposal to Create a decentralized stablecoin called Go spelled gho which would be minted in Much the same way that borrowers Currently borrow tokens from rv i.e via Over collateralization What makes go different from borrowing Another stable coin from rv is that the Interest rate for mint and go would be Set by community governance and this is Mainly because interest payments made by Go minters would go directly to the ave Treasury What’s more is that rv stakers would Have the ability to mint go at a Discounted interest rate as low as zero Percent all while continuing to earn Interest on the crypto they’re using as Collateral to mint said go which the rv Team hopes will eventually be used for Actual payments The proposal was met with lots of praise From the crypto community which is Impressive given that terrace collapse Was thought to have turned individuals And institutions off the idea of Decentralized stable coins More about what happened there using the

Link in the description Anyhow as amazing as all rv’s Announcements developments and Partnerships have been the rv token Continues to take a beating and is down More than 70 percent since i last Covered the project in january This is for a few reasons for starters The crypto market has been getting Wrecked by macro factors like energy Disruptions caused by the war in ukraine Supply chain disruptions caused by the Pandemic we’re still somehow in and by The relentless rise in interest rates in The united states and elsewhere Arva’s circulating supply has also Increased by more than 400 000 over the Last six months Assuming an average price of around 100 Per ave that works out to over 40 Million dollars of potential cell Pressure which is a lot for a Medium-sized cryptocurrency It looks like some of this pressure is Coming from all the grants ave has given Over the last year which have totaled More than 3 million according to the rv Grants website to be fair though this Isn’t all that much cell pressure Especially compared to other projects Even so it seems most of this cell Pressure is in fact coming from rva’s Ecosystem reserve which initially Received three million of arvay’s 16

Million supply as part of the lend token Migration in 2020 Today rva’s ecosystem reserve only holds 1.7 million ave according to etherscan On the demand side of this economic Equation etherscan suggests that the Number of rv token holders continues to Rise and i suspect this is because the Rv token sticker price has declined Significantly which has made it more Appealing to investors who don’t pay Attention to market cap On that note i couldn’t help but notice The comments during the last video Arguing that rv was not undervalued Because its sticker price was high when Arve was and arguably still is Undervalued as its market cap is four Times smaller than the total value Locked in the rv protocol Always remember that it’s the market cap That matters not the price tag Now the counter argument to this is that Inexperienced retail investors only pay Attention to sticker price but these Days there aren’t very many retail Investors around so that doesn’t really Matter What does matter however is the relative Lack of demand drivers for the rv token The rv tokens utility is currently Limited to governance and staking which Offers an admittedly attractive reward Relative to alternatives albeit with

Slightly higher risks The silver lining is that most of rva’s Supply is in circulation meaning there Isn’t much cell pressure left and this Seems to be the rationale behind Allocating the interest rates from the Go stablecoin to the rv treasury it Reduces the cell pressure for the rv Token and ensures the protocol’s Longevity The introduction of the go stablecoin Should also increase the demand for arve Since it will make it possible for arve Stakers to mint go at near zero interest Rates The caveat is that an increase in staked Arve could dilute the overall staking Reward which could weaken ave’s second Demand driver The harsh reality is that rva’s future Improvements to demand won’t do much to Change the fact that we’re currently in A crypto bear market but it will help The ave token rise to astronomical Heights when the next bull market comes Around especially if the go stablecoin Gains serious adoption If you want to find out when the crypto Bear market will end look no further Than the link in the description Anywho whether rv rises to astronomical Heights in the future ultimately depends On the project’s upcoming milestones While rv doesn’t technically have a

Roadmap a roadmap for rv’s ecosystem can Be found on the newt website For context newt is the quote Experiments arm of arve and its explicit Goal is to create crypto innovations at Breakneck speed i’ll leave a link to the Website in the description As you can see the newt team is working On a decentralized meme generator for Lens protocol working on unspecified Improvements to ave working on a new nft Game and working on a ticket mechanism That uses zero knowledge proofs Now it looks like they’re a bit behind As these were all due for q2 The newt team is also working on Improving a decentralized application Called ica market which makes it Possible to sell your time as nfts a Freelance services marketplace if you Will Interestingly ike market is operated by The same cayman islands company that Runs the rv website Now the remaining milestones on the newt Roadmap are currently on hold and they Include debt bearing flash loans another Nft game flash loans that are optimized For gas fees and rebasing nfts If you watched our previous rv update You’ll know the team is working on a Mobile wallet as well Now additional rv milestones can be Found in presentations by and interviews

With are they founder stanley kolechov In a january presentation stanley stated That arve will probably not be expanding To blockchains that don’t use ethereum’s Virtual machine for smart contracts Simply because it’s way too complicated To do and not an effective use of the Team’s time and money In a march interview stanley mentioned That there’s a quote long list of Optimizations for rv in the works which Is centered around gas optimization Expanding to more ethereum layer twos And improving user experience Stani and the arve team also seem to be Focused on developing the lens protocol And stanley’s recent tweets and Interviews suggest he’s been especially Focused on rva’s decentralized social Media platform even though there are a Few important rv milestones that have Yet to be met This brings me to the concerns i have About ave and my first concern relates To its development It’s clear that arve has lots of Projects on the go and even more ideas Waiting to be turned into projects The thing is that it’s possible if not Likely that these side quests are taking Resources be they financial or physical Away from the development of the rv Protocol itself don’t get me wrong what Arvey is doing with lens protocol is

Absolutely incredible and extremely Important but there’s only so many Things a single team can do well much Less a single person This presents a risk because the rv Protocol literally has billions of Dollars in total value locked To my knowledge arve hasn’t been hacked Or exploited in the way that many other D5 protocols have but if the time and Attention of the rv team and community Are split among other projects it Increases the risks that a hack or Exploit could happen especially as new Features are rolled out This ties into the second concern i have About rv and that’s regulation As i mentioned at the very beginning of The video decentralized finance Protocols and stable coins have become The number one targets for regulators Around the world especially Decentralized stable coins because of Terror Arva’s plans to launch a decentralized Stablecoin of its own could attract the Attention of regulators around the world Especially since arve is already one of The biggest d5 protocols To make things worse the proposal for The go stablecoin was tabled by the rv Team Now if you’ve watched any of our videos About the financial action task force or

Fat f you’ll know that it’s calling on Regulators to go after the developers of D5 protocols and crypto projects when They play a significant role in them If it turns out that the ave team has Significant voting power on arve this Could make them an easy target Luckily it seems that stunning is in the Clear because last i checked he only Holds 20 rv and that’s probably because He’s hyper aware of the regulations Around what arvey is doing Even so i know for a fact that Regulators will try everything they can To take down rv stablecoin if it becomes Successful this relates to my final Concern and that’s competition As i also mentioned at the very Beginning of the video ave has been Constantly raising the bar for Decentralization and innovation However it is now expanding to compete In multiple niches which could make it Less effective in all of them Arve’s allegiance to ethereum’s Ecosystem could also be an achilles heel In this regard after all the future of Finance is multi-chain and that means That rv needs to be willing and able to Expand to non-evm chains which i’m sure Will happen eventually So all in all despite these concerns ave Has serious potential and is easily the Most promising crypto project in the

Defy niche If and when the price is right i will be Adding rv to my portfolio and you can Find out how my portfolio performed last Year using the link in the description And that is all for today’s rv update so If you enjoyed it smash that like button To let me know don’t forget to subscribe To the channel and ping that Notification bell too because you Definitely don’t want to miss the next Video In the meantime you can check out coin Bureau clips for emergency market Updates and behind the scenes outtakes And tune in to the coin bureau podcast For crypto rants and rabbit holes that Will make your mouth gape I’m also active on twitter tiktok and Instagram and tell you what i’m seeing In the crypto markets on telegram If you want to find out what cryptos i Currently hold as part of my portfolio My weekly newsletter is where you should Go if you’ve done all of the above then There’s just one more step to becoming a True fan of the coin bureau and that’s To head on over to our merch store and Get something that will suit you and Help support the work we do You can find your way to all of these Resources using the links down below So thank you all so much for watching And i will see you next time till then

Stay cool stay safe and stay crypto [Music] You

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