can leverage this integration to speed up the process of establishing GHO liquidity from the ground up. Additionally, it can provide a bb-a-USD aToken incentive at almost no cost by borrowing against its BAL holdings. By providing LPs with the option to leverage their position and leveraging veBAL, Aave could incentivize the aToken lending market.Aave’s stablecoin GHO may benefit from the synergy between the two dominant DeFi systems.
If GHO turns to be successful, Aave and Balancer will both see substantial increases in their TVL. Furthermore, it would lay the groundwork for a stablecoin that is both competitive and efficient with regards to the use of capital. At press time, Aave’s TVL as per DefiLlama stood at $5.4 billion, a significant decrease from where it once stood. At the time of writing, the Aave 3 TVL was valued at about $882.41 million.On the other side, the TVL for Balancer stood at $1.79 billion at press time. The TVL had witnessed a significant decrease than what it used to be. However, it was possible to see that the movement of the TVL chart showed some improvements recently.
These developments on both platforms show that token holders could have more opportunities to put their tokens to work, thus leading to a profit than just buying and holding them.Subscribe to get it daily in your inbox.