Aave and Lido are among the top three largest DeFi protocols by TVL (Total Value Locked).
They are soon launching a joint product focused on Lido’s stETH tokens.
Why is this necessary, and how will it work?
• Aave is the largest lending platform where various cryptocurrencies can be borrowed against collateral. It’s a useful tool for increasing liquidity. For example, one can borrow USDT against ETH for specific purposes.
• Lido is the largest protocol for liquid staking of ETH. You stake ETH through Lido and receive stETH tokens in return, which can be used to increase yields in DeFi.
The collaboration between these projects appears seamless as they complement each other.
Aave will create a dedicated platform focused on the Lido ecosystem and stETH tokens.
As a result, Aave will expand its ecosystem, and Lido users will have a convenient platform for more efficient DeFi utilization.
Another news from Aave: the protocol plans to launch on zkSync, one of the largest L2 networks, and release its stablecoin GHO on the Arbitrum network.
Thus, Aave is actively expanding its ecosystem and covering new networks and markets.
