The banks are out of the bag: In a tweet from DeFi (Dezentral Finance, DeFi), the co-founder of the money market, Stani Kulechov, announced that the Aave protocol has created a “private pool” for institutes in which they “practice “Before delving into the DeFi ecosystem.
Early in the morning, a Twitter user posted an angry tweet addressed to Aave’s official Twitter account and found that his address had been “blacklisted” due to anti-money laundering regulations:
Yo. What the heck @AaveAave $ AAVE? pic.twitter.com/xKnaG7Idya
– HMS RΞΞpΞr (@ Fernjosh1) May 12, 2021
Kulechov himself responded to the tweet, initially saying that an error had occurred and that “the text is actually wrong and relates to another pool that we are testing” before later revealing the clientele the pool was designed for:
It is a private pool for institutions that are still practicing before engaging in DeFi
– stani.eth = (⬤_⬤) = (@StaniKulechov) May 12, 2021
In an interview with Cointelegraph, Ajit Tripathi, director of institutional business development at Aave, confirmed that the protocol designed an approved pool specifically for institutions and characterized the purpose of the pool as educational.
“It’s a great solution to foster collaborative learning between Cefi and Defi,” said Tripathi.
He noted that the private test pool is designed to be AML compliant and that all users need to know your customer review from the relevant partners. Also, the pool could come to the mainnet sooner rather than later. “
“We are at an advanced stage of development. Please see this section for more information. “
While many AAVE token holders were excited to hear that institutional money might soon be pouring into the protocol, other users were more skeptical of what centralized institutions participating in DeFi could mean.
The pursuit of institutions will kill this movement, mark my words. https://t.co/7AQTFcQD0P
– Ser Doggo IV, last name (@fubuloubu) May 12, 2021
However, Tripathi noted that, similar to DeFi itself, figuring out how institutions can participate in protocols remains an open question.
“This is a space of innovation and learning for cefi and defi. As I said, the institutions, the Defi community and regulators are all excited about the promise that Defi has made in creating a fairer, more efficient and more inclusive financial infrastructure for all, and we are grateful to be able to contribute. “