Market
Aave DAO’s $100M Loan: Here’s What to Know
Aave DAO, Trident Digital, TokenLogic, and on-chain aggregator IntoTheBlock joined hands for the first $100 million fixed yield loan launch.
The fixed-yield loan locks 33,000 Ethereum (ETH) for three months, supported by a non-custodial smart contract from IntoTheBlock’s institutional DeFi solutions. Lenders receive aETH tokens as collateral, guaranteeing a yield that doubles the returns from staking in ETH.
Aave DAO Launches $100M Fixed-Yield Loan
The fixed-yield loan functions as a type of tokenized bond or security with interest payments directly tied to the Aave protocol’s revenue. This setup ensures a fair balance of interests and reduces the chances of “wrong-way risk” associated with traditional structures, where creditors face higher exposure and risk when a debtor’s credit quality declines.
Therefore, it allows investors to participate in a fixed-yield opportunity by supplying capital in the form of ETH and receiving aETH tokens as collateral. aETH is a synthetic derivative asset bridging the currently illiquid Ethereum 2.0 and the regular Ethereum network.
The fixed-yield loan exemplifies how tokenization and blockchain technology can revolutionize the issuance and management of bonds and securities. This tokenization process transforms traditional bonds or securities into digital assets that are tradable securely on blockchain networks.
Read more: How to Use Aave inside Aave V4’s Safer, Faster Lending Solutions
Aave DAO supports this fixed yield, maintaining returns across the loan term using revenues generated by the Aave lending protocol. When the term is over, the smart contract unlocks. This enables lenders to withdraw their initial ETH deposit and the accrued interest, opening up new possibilities for creating and trading tokenized financial instruments in a decentralized and inclusive manner.
The trend is gaining traction in 2024, attracting industry giants like BlackRock, which paid out $2.1 million in dividends in July. Other notable players in the securities tokenization sector include Ondo Finance and Franklin Templeton. Together, they boast a market capitalization exceeding $1.3 billion.
The launch marks a big step for the Aave DAO, implementing a model of Aave v3 to support ETH-correlated assets. It aligns with the broader initiative to promote Liquid Restaking Tokens (LRTs) on Mellow Finance’s Symbiotic restaking protocol alongside Lido DAO.
Restaking Solution for Traditional Challenges in On-Chain Bonds
Traditional challenges regarding term debt access affect the industry’s progress. Due to their volatility and illiquidity, efforts to use governance tokens as collateral in establishing on-chain “bonds” remain obstructed. The structures disproportionately favored borrowers, exposing lenders to serious risks without commensurate rewards.
Against this backdrop, restaking has become one of the most interesting crypto narratives in 2024. Data on Dune shows that 27.86% of ETH supply is staked. It also shows a steady increase in staked ETH (stETH), reaching over 34 million, and validators going above one million.
A recent report from CoinGecko noted that EigenLayer’s restaking contributed to the Ethereum ecosystem’s achievement in Q1 2024.
Read more: Ethereum Restaking: What Is It And How Does It Work?
BeInCrypto also covered Symbiotic’s debut in mid-June, which aims to offer flexible, permissionless restaking options. The launch followed a $5.8 million funding round from Paradigm and Cyber Fund. The new project poses a significant challenge to EigenLayer, a major player in the Ethereum restaking sector.
These developments signal a new era of possibilities in the digital asset industry, demonstrating continued innovation. It also sets a new standard for secure, balanced, mutually beneficial financial products in decentralized finance.
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Market
XRP Price Ready to Rally? Signs Point to a Bullish Move
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Market
Solana (SOL) Rallies Strongly, Setting Sights on $200
Solana started a fresh increase above the $172 support zone. SOL price is rising and might soon aim for a move toward the $200 level.
- SOL price started a fresh increase after it settled above the $165 level against the US Dollar.
- The price is now trading above $172 and the 100-hourly simple moving average.
- There was a break above a key bearish trend line with resistance at $162 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could continue to rise if it clears the $192 resistance zone.
Solana Price Starts Fresh Rally
Solana price formed a support base and started a fresh increase above the $162 level like Bitcoin and Ethereum. There was a strong move above the $165 and $172 resistance levels.
There was a break above a key bearish trend line with resistance at $162 on the hourly chart of the SOL/USD pair. The price even cleared the $185 level. A high is formed at $192 and the price is now consolidating gains. It is trading above the 23.6% Fib retracement level of the upward move from the $155 swing low to the $192 high.
Solana is now trading above $172 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $192 level. The next major resistance is near the $195 level.
The main resistance could be $200. A successful close above the $200 resistance level could set the pace for another steady increase. The next key resistance is $212. Any more gains might send the price toward the $220 level.
Another Dip in SOL?
If SOL fails to rise above the $192 resistance, it could start a downside correction. Initial support on the downside is near the $188 level. The first major support is near the $180 level.
A break below the $180 level might send the price toward the $172 zone or the 50% Fib retracement level of the upward move from the $155 swing low to the $192 high. If there is a close below the $172 support, the price could decline toward the $165 support in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is gaining pace in the bullish zone.
Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.
Major Support Levels – $188 and $185.
Major Resistance Levels – $192 and $200.
Market
Will Bulls Push It Higher?
Ethereum price started a fresh surge above the $2,650 resistance. ETH is up over 10% and might aim for a move above the $2,850 resistance.
- Ethereum started a fresh surge above the $2,650 resistance zone.
- The price is trading above $2,700 and the 100-hourly Simple Moving Average.
- There is a new connecting bullish trend line forming with support at $2,730 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to rise if it settles above $2,850 and $2,880.
Ethereum Price Extends Surge
Ethereum price started a fresh increase above the $2,550 resistance like Bitcoin. ETH was able to climb above the $2,550 and $2,650 resistance levels to move into a positive zone.
It even surged above the $2,720 level in the past few sessions, beating BTC. It is up over 10% and there was a move above $2,800. A high is formed at $2,848 and the price is showing signs of more upsides. It is holding gains above the 23.6% Fib retracement level of the upward move from the $2,357 swing low to the $2,848 high.
Ethereum price is now trading above $2,700 and the 100-hourly Simple Moving Average. There is also a new connecting bullish trend line forming with support at $2,730 on the hourly chart of ETH/USD.
On the upside, the price seems to be facing hurdles near the $2,850 level. The first major resistance is near the $2,880 level. The main resistance is now forming near $2,950. A clear move above the $2,950 resistance might send the price toward the $3,000 resistance.
An upside break above the $3,000 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,250 resistance zone.
Are Dips Supported In ETH?
If Ethereum fails to clear the $2,850 resistance, it could start a downside correction. Initial support on the downside is near the $2,800 level. The first major support sits near the $2,720 zone and the trend line.
A clear move below the $2,720 support might push the price toward $2,650. Any more losses might send the price toward the $2,550 support level in the near term. The next key support sits at $2,500.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Major Support Level – $2,850
Major Resistance Level – $2,720
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