Aave, a decentralized liquidity protocol, is developing a special pool for corporate users preparing to enter the DeFi sector. By decentralizing credit transactions, Aave may begin to warn some of its users as part of the anti-money laundering (AML) context.
“You cannot use the Aave Protocol with this address”
A user connected to Aave via Polygon tweeted on Wednesday and shared the message he encountered trying to use the protocol.
In the message appearing on the screen, it was stated that “the address of this user has been blacklisted due to AML regulations” and cannot be used in Aave Protocol. There is a $ 12 billion asset locked on Aave, one of the biggest protocols in the DeFi world.
“Related to another pool we tested”
Cryptocurrency users are used to seeing KYC and AML applications on centralized cryptocurrency platforms. While seeing them on a decentralized platform raised questions, some of them were answered by Stani Kulechov, the founder and CEO of Aave himself.
“You can always use the Aave Protocol,” said Kulechov, first of all recalling the decentralized nature of Aave. gave the message. Speaking about the AML warning on the application, Kulechov said:
“This warning is not correct and is actually related to another pool we are testing. … A special pool for institutions that practice before entering DeFi. ”
While the number of institutional investors in the cryptocurrency market has increased since the beginning of last year, it is difficult to measure how many percent of them are interested in decentralized applications. The total value of assets locked on Ethereum-based DeFi platforms was around $ 880 million on May 12, 2020, and now over $ 88 billion.