Aave and Yearn will deepen their partnership
The first post by a Yearn member is posted on the Aave forum. Lehnberg from the Yearn community posted a proposal on the Aave forum to discuss further relationships between two teams.
The proposed partnership covers various parts, from the YFI token to the Yearn treasury and the native credit delegation for the Yearn vaults. Lehnberg suggests that three actions must be taken together to positively impact the ecosystem of Aave and Yearn.
More opportunities for both platforms
Partnerships between DeFi platforms always mean more services and opportunities for end users. When two teams and communities work with each other, they can benefit from each other's characteristics.
Yearn and Aave have been working together before and are now looking for new ways to expand the partnership. The first post by one of Yearn members on the Aave forum signifies a considerable step towards deepening partnerships. It is a proposal focused on three critical areas on both platforms.
The latest proposal on Aave details three steps to deepen the partnership with Yearn. The first deals with the deactivation of YFI as a loan asset. It is focused on preventing shoring attacks and increasing the utilization of Aave within Yearn products. Two other steps in the proposal are to extend a 3% fixed rate line to Yearn's Treasury and allow Aave's LPs to delegate to Yearn's vaults.
Disabling YFI as a loan asset has multiple results for the Aave community. It will make Aave more competitive. In other words, when the risks of governance and short-circuit attacks are eliminated, Aaave can compete with Maker and gradually become the preferred place to deposit YFI as collateral. Also, the demand for YFI will increase and there will be a low cost for Aave to do so.
Enabling access to native credit delegation for Yearn vaults is another essential part of Aave's latest proposal. Lehnberg details the steps:
“Yearn has supported Aave's credit delegation functionality since it was released through yborrow.finance and more recently yDelegate, which has yet to be released. Native Credit Delegation, a feature that is part of Aave v2, allows LPs to delegate directly to Yearn vaults from within Aave's own interface.
Each part of the latest proposal to deepen the partnership between Aave and Yearn has some requirements. If community members vote for the latest proposal, YFI will not be available as a loan asset to Aave users.
The native credit delegation part requires some minor technical steps, such as developing an interface with a deposit () and withdrawal calls () for vaults. Yearn will make this possible for Aave and other partners with a Yearn SDK in development.
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