Home CryptoNews Aave and Yearn Will Deepen Partnership

Aave and Yearn Will Deepen Partnership


The first post from a Yearn member on the Aave forum is published. 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 YFI token to Yearn treasury and native credit delegation for Yearn vaults. Lehnberg suggests that three actions should be done together to impact the Aave and Yearn ecosystem positively.

More Opportunities for Both Platforms

Partnerships between DeFi platforms always mean more services and opportunities for the final users. When two teams and communities work with each other, they can benefit from each other’s features. Yearn, and Aave have been working together before and are now looking for new ways to expand the partnership. The first post from one of the Yearn members on the Aave forum means a considerable step toward deepening the partnerships. It’s a proposal with a focus on three critical areas in both platforms.


The latest proposal on Aave details three steps for deepening the partnership with Yearn. The first one is about disabling YFI as a borrowing asset. It’s focused on preventing the shoring attacks and increasing the utilization of Aave within Yearn products. Two other proposal steps are about extending a 3% fixed interest facility to Yearn’s Treasury and allowing Aave LPs to delegate to Yearn vaults.

Disabling YFI as a borrowing asset has multiple results for the Aave community. It will make Aave more competitive. In other words, when the risks of governance and shorting attacks eliminate, Aaave can compete with Maker and gradually become the preferred place to deposit YFI as collateral. Besides, the demand for YFI will increase, and there will be a low cost for Aave to do this.

Enabling access to Native Credit Delegation for Yearn vaults is another essential part of Aave’s latest proposal. Lehnberg details the steps:

“Yearn has been supporting Aave’s credit delegation functionality since it was launched through yborrow.finance and more recently in the yet-to-be-released yDelegate. Native Credit Delegation, a feature part of Aave v2, allows LPs to delegate into Yearn vaults directly from within Aave’s own interface.”

Each part of the latest proposal for deepening the partnership between Aave and Yearn has some requirements. If the community members vote for the latest proposal, YFI will not be available as a borrowing asset to Aave users. The Native Credit Delegation part needs some minor technical steps like developing an interface with a deposit(), and withdraw() calls for vaults. Yearn will make it possible for Aave and other partners with an under-development Yearn SDK.

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Mehdi Zare
I am a young father who always loves to learn. Security and privacy topics are my main interests, and so, blockchain as one of the most strong security and privacy solutions of the modern industry excites me too.
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