Aave App under the hood

Transcript

in user experience. There's almost zero user onboarding, user education that has to happen when onboarding to these applications for the first time. They work seamlessly, they have no added jargon, no added fees, and moving money from the place where users have their money, which is their bank account, into the fintech application happens seamlessly without issue 100% of the time. Compare this with the experience of using many DeFi-powered projects today, and it it is worlds apart. They are full of jargon and fees. Users need to understand about tokens and chains and markets. It is a mess. It is really hard for everyday users to use DeFi projects

today. To illustrate this point, I'm sure many of you here are familiar with a concept called the Turing test. Uh but for those of you who are not, it goes a little like this. You place a user in front of a messaging application, and you ask that user, "Are you messaging with another human being, or are you messaging with an AI?" If the user isn't able to tell you with any degree of confidence one way or the other, if they're messaging with an AI or another human being, then it passes the Turing test.

We believe that our industry has a very similar test. We call it the fintech test, and it goes like this. You place a user in front of a fintech application, and you ask that user, "Is this application powered by blockchains, or is it not?" If the user can't tell you with any degree of certainty one way or the other, whether the fintech application is powered by blockchains or not, then that application passes the fintech test. In many ways, this is what our industry has been working towards since its very inception.

Just a few short months ago, at the end of last year, during Devconnect in Argentina, we released the wait list for Aave app. And since then, we have tailor-made Aave app to be the first DeFi-powered project to pass the fintech test and stand shoulder to shoulder with a DeFi giant with a fintech giants of today. We have done this by treating crypto not as the product but as the infrastructure that powers the product. And speaking of infrastructure, we've had to build a lot of it.

Simply put, the state of blockchain technology today did not make us feel confident enough that building Aave app on top of it would satisfy all of the requirements to pass the fintech test. And so, to meet all of these requirements Aave has built a first-of-its-kind, state-of-the-art vault product tailor-made for Aave app and consumer savings. This brand new Aave vault comes with fixed rates. This is in contrast to the variable rates that plague our industry today.

Fixed rates are incredibly important for onboarding everyday people because they mirror the experience that uh that users have with major fintechs that they already use today. It allows them a stable, predictable rate that they can use to estimate how much their savings, their wealth is going to grow 6, 12, 24 months from now. Variable rates simply do not fit the mental model that everyday users have today when using a savings application. Next, this brand new Aave vault comes with per user rates.

So, you're able to specify at the individual user level exactly what their savings rate is. This allows integrating applications like Aave app to to offer in-app rewards for things like meeting minimum balance thresholds, referring friends, or setting up automated deposits. And lastly, these brand new Ave vaults abstract away everything. They are natively multi-chain, multi-token multi-strategy. Multi-chain means that you can deploy these vaults on a gas-efficient chain and not have it cost a ton of money while still not being a victim of your own success in the event that you do

attract billions and billions of dollars in user deposits and therefore move the market in the gas-efficient chain where you deploy this vault. Multi-chains means you can access all of Ave's liquidity across all of the different markets across all of the different chains where Ave is deployed. Multi-token means that everything is just a dollar. You can deposit any major stablecoin into Ave's vault and receive vault shares in return. And multi-strategy means that these brand new Ave vaults can earn with Ave V3, V4, Savings Go, or any other DeFi opportunity across the entire DeFi landscape.

These brand new vaults are available today in Ave app and will be available to major third-party fintech integrators starting May 1st. Thank you. >> [applause] >> I think there's a little bit of time for Q&A. I'm not sure. It doesn't say. Yeah, we do have a few minutes. Okay, we have we have a few minutes for for Q&A. Uh Colton, you want to help uh I Maybe s- Um yeah, um hi, I'm Gardensky.

Uh quick question. Uh How do you manage the compliance for for the institutional players in in the Yeah, in the app. Thank you. So, Aave app is built for retail investors. It's built for consumers. And so, the idea is that everyday users of major fintech products would be the users for Aave app. Uh so, it is Aave app itself does not integrate institutional players today. Uh but, with the integration that you'll be start to do uh May 1st, you'll be able to like any third-party integrator, any major fintech would be able to use this and serve their their end users.

Yeah. So, the benefit, one of the cool things about these brand new vaults built tailor-built for Aave app is that they allow you to earn across any Aave market across all of the different deployments in Aave across all of the different chains. Across all of the different stablecoins. And so, what it effectively acts as is this sort of unifying, you know, maximum stablecoin yield arbitrage across all of the different markets where Aave is deployed. And so, this should make us very confident that we'll be able to surface the best industry-leading yields across the entirety of our landscape.

We'll be launching with 6%. 6%? Yeah. >> It the first version is fully on chain. Future versions will integrate privacy. Yeah, so integrating the vault powering

of a app and additional distribution interfaces would be a simple as using of a kit, which is our unified SDK and API suite for integrators to integrate into their own platforms. And so it's completely white label, completely behind the scenes. We are. But that's why of a app amongst many other things offers balance protection up to a million dollars. So we we are effectively the curator and we we manage the the variable rate risk.

KYC is fully optional in of a app, so you can deposit stable coins directly. And as mentioned, you can deposit any major stable coin and you will receive vault shares in return. per user balances in of a app, yeah. Are there? One more?

>> Without KYC, you can deposit an infinite amount of stable coins and you you can withdraw an infinite amount of of stable coins. With With KYC, you'll have uh there'll be uh limits uh which you can increase with providing additional information. Uh Last one. Last one. Last one. >> Okay, sorry. You you mentioned just mentioned KYC is optional. Yeah. But uh for my case of knowledge, uh KYC is uh obligatory in in Europe. How do you want to enter the market here? Yeah so like every other self-custodial uh uh DeFi Parrot application, uh Aave app is fully self-custodial. Uh you're able to uh have users just uh

hold their assets and uh deposit stable coins uh like any other product like MetaMask, for example. Uh in the event that you do want to connect a bank account and link uh a regulated financial institution, then at that point you would have to KYC. Okay. Thank you, guys. >> [applause] >> All right. Next up, we have a panel about stable coins and the fight for