Aave Community Voting Results: 99.9% Approve PayPal's PYUSD Stablecoin Integration

Decentralized finance protocol Aave has taken a major step by deciding to integrate PYUSD, a stablecoin issued by Paxos Trust Company and backed by PayPal. A total of 99.98% of AAVE token holders approved the integration of the PYUSD Stablecoin into the Ethereum Aave pool. This move not only strengthens PYUSD's position in the market, but also creates synergies with Aave's decentralized stablecoin, GHO.

A look at the PYUSD Stablecoin

PYUSD is a stablecoin whose value is tied to the US dollar. This stablecoin first appeared in August and currently has a market capitalization of around $289 million, or about 0.3% of the market capitalization of other leading stablecoins, such as tether which reaches $94 billion.

While Aave is a decentralized financial protocol that allows users to borrow and lend funds without the need to involve intermediaries. According to data from DappRadar, AAVE is currently the third largest DeFi solution in the world, with nearly $5 billion worth of crypto assets locked in the protocol.

The majority of AAVE token holders who took part in the vote supported the PYUSD integration.

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Effects of PYUSD Integration

The proposal from Trident indicates that the integration of PYUSD into AAVE will help build synergies with the PayPal stablecoin and strengthen the relationship between PYUSD and AAVE's decentralized multi-collateral stablecoin called GHO.

Trident, which currently provides incentives in the form of liquidity for the PYUSD/USDC pool on Curve, has also committed to providing approximately $5 million to $10 million in liquidity for PYUSD on AAVE from day one of its launch.

This collaboration not only increases confidence in PYUSD, but also shows the great potential of cooperation between crypto platforms and large financial institutions. With this move, PYUSD and Aave are on track to lead innovation in the crypto world.

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