Decentralized money market protocol Aave has expanded its offerings with its latest partnership with Centrifuge. Starting from today, the Real-World Asset (RWA) Market is operational with seven
liquidity
Liquidity
Liquidity is at the core of every broker’s offering. It is a basic characteristic of every financial asset – be it a currency, stock, bond, commodity or real estate. The more liquid an asset is, the easier it is to sell and buy on the open market. Foreign exchange is considered to be the most liquid asset class.Brokers can source liquidity from a single or multiple source, thereby delivering to their clients enough market depth for their orders to get filled. The main characteristic of liquidity is its depth, which will determine how quickly and how big of an order can be executed via the trading platform.Understanding LiquidityLiquidity can be internal or external depending on the size and the book of the broker. Companies which are large enough and have material client flows consistently are creating their own liquidity pools from the order flow of their clients, thereby internalizing flows and saving on costs to send customer orders to the interbank market. By doing that however they are exposing themselves to carry the risk on the trade.Liquidity providers can be prime brokers, prime of primes, other brokers or the broker’s book itself. Traditionally brokers are split between internalizing flows and offloading trades of their clients to different liquidity providers.Generally, retail brokers and their clients prefer more liquid assets which lead to better fill rates and less slippage. When there is lack of liquidity on a certain market, slippage can occur – the order is executed at a price which is the closest available to the one requested by the client.
Liquidity is at the core of every broker’s offering. It is a basic characteristic of every financial asset – be it a currency, stock, bond, commodity or real estate. The more liquid an asset is, the easier it is to sell and buy on the open market. Foreign exchange is considered to be the most liquid asset class.Brokers can source liquidity from a single or multiple source, thereby delivering to their clients enough market depth for their orders to get filled. The main characteristic of liquidity is its depth, which will determine how quickly and how big of an order can be executed via the trading platform.Understanding LiquidityLiquidity can be internal or external depending on the size and the book of the broker. Companies which are large enough and have material client flows consistently are creating their own liquidity pools from the order flow of their clients, thereby internalizing flows and saving on costs to send customer orders to the interbank market. By doing that however they are exposing themselves to carry the risk on the trade.Liquidity providers can be prime brokers, prime of primes, other brokers or the broker’s book itself. Traditionally brokers are split between internalizing flows and offloading trades of their clients to different liquidity providers.Generally, retail brokers and their clients prefer more liquid assets which lead to better fill rates and less slippage. When there is lack of liquidity on a certain market, slippage can occur – the order is executed at a price which is the closest available to the one requested by the client.
Read this Term pools and enabling liquidity providers to deposit USDC on Centrifuge and the Aave protocol.
Until now, Aave users could lend and borrow cryptocurrencies, with interest rates adjusted based on the market demand. With this newly formed partnership with Centrifuge, a decentralized real-world asset (RWA) financing protocol, Aave successfully bridges DeFi with the trillion-dollar real-world asset market.
New Market To Offer More Opportunities For Users
Serviced by END Labs, Aave’s RWA Market will allow businesses to access financing using their “tokenized” real-world assets. Besides empowering SMEs and SMBs to raise funds without any mediators quickly, liquidity providers can diversify their portfolios and earn stable yields.
Earlier this year, Centrifuge introduced the first RWA market for Maker. Businesses can tokenize their invoices, trade receivables, and other real-world assets by leveraging Centrifuge. Once tokenized, participating businesses can post these tokens as collateral to access funding from Aave’s liquidity pools. This partnership with Aave will further help Centrifuge users tap into additional liquidity sources as and when needed.
With the launch of RWA Market, the world of traditional finance (TradFi) takes a step closer to the world of decentralized finance (DeFi). Depositors will be required to complete
Know Your Customer (KYC
Know Your Customer (KYC)
Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks involved with maintaining a business relationship. KYC processes are also utilized by companies for the purpose of ensuring their proposed customers, agents, consultants, or distributors are anti-bribery compliant. In an age of identity theft and myriad hacking, KYC has become a major emphasis by regulators.As such, banks, insurers, export creditors and other financial institutions are increasingly demanding that customers provide detailed due diligence information. These regulations had initially been imposed only on the financial institutions, having now extended to the non-financial industry, fintech, virtual assets dealers, and many non-profit organizations.Regulators Taking No Chances with Identities Regulated brokers in the retail industry are very stringent when applying appropriate KYC verifications after financial watchdogs worldwide have become stricter in monitoring their compliance with the procedure in recent years. Not only brokers use KYC, the procedure is also widely used by banks, and any financial companies that provide insurance or credit and require appropriate due diligence. Most major jurisdictions in the financial space mandate KYC requirements as well as all regulated brokers.The vast majority of these countries have adopted KYC standards as mandatory only during the past two decades. This has helped curb illicit behavior and has become a fixture of the industry.
Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks involved with maintaining a business relationship. KYC processes are also utilized by companies for the purpose of ensuring their proposed customers, agents, consultants, or distributors are anti-bribery compliant. In an age of identity theft and myriad hacking, KYC has become a major emphasis by regulators.As such, banks, insurers, export creditors and other financial institutions are increasingly demanding that customers provide detailed due diligence information. These regulations had initially been imposed only on the financial institutions, having now extended to the non-financial industry, fintech, virtual assets dealers, and many non-profit organizations.Regulators Taking No Chances with Identities Regulated brokers in the retail industry are very stringent when applying appropriate KYC verifications after financial watchdogs worldwide have become stricter in monitoring their compliance with the procedure in recent years. Not only brokers use KYC, the procedure is also widely used by banks, and any financial companies that provide insurance or credit and require appropriate due diligence. Most major jurisdictions in the financial space mandate KYC requirements as well as all regulated brokers.The vast majority of these countries have adopted KYC standards as mandatory only during the past two decades. This has helped curb illicit behavior and has become a fixture of the industry.
Read this Term) procedures and sign a subscription agreement with RWAM (RWA Market LLC) to participate in the marketplace.
Whitelisted Depositors can provide USDC liquidity to the market in return for aDROP, representing a pool of DROP tokens purchased by RWAM and distributed to them. Currently, there are thirty markets on Aave. With today’s launch of the RWA Market, the Aave ecosystem adds another seven permissioned markets. Accordingly, the Centrifuge-Aave partnership offers Aave users yield generation opportunities against stable, uncorrelated real-world collateral.
In the meantime, Centrifuge serves as the bridge between real-world assets and DeFi. An increasing number of businesses are using Centrifuge to access financing, which wasn’t available in the TradFi space. The RWA Market will unlock a new source of liquidity for Centrifuge users by adding Defi composability between Aave and Tinlake, Centrifuge’s asset-backed lending dApp.
As part of the launch, Centrifuge is also offering additional token rewards. The platform supports a wrapped version of its native CFG token as a reward for signing up and plans to distribute 9,250 tokens per day.
Decentralized money market protocol Aave has expanded its offerings with its latest partnership with Centrifuge. Starting from today, the Real-World Asset (RWA) Market is operational with seven
liquidity
Liquidity
Liquidity is at the core of every broker’s offering. It is a basic characteristic of every financial asset – be it a currency, stock, bond, commodity or real estate. The more liquid an asset is, the easier it is to sell and buy on the open market. Foreign exchange is considered to be the most liquid asset class.Brokers can source liquidity from a single or multiple source, thereby delivering to their clients enough market depth for their orders to get filled. The main characteristic of liquidity is its depth, which will determine how quickly and how big of an order can be executed via the trading platform.Understanding LiquidityLiquidity can be internal or external depending on the size and the book of the broker. Companies which are large enough and have material client flows consistently are creating their own liquidity pools from the order flow of their clients, thereby internalizing flows and saving on costs to send customer orders to the interbank market. By doing that however they are exposing themselves to carry the risk on the trade.Liquidity providers can be prime brokers, prime of primes, other brokers or the broker’s book itself. Traditionally brokers are split between internalizing flows and offloading trades of their clients to different liquidity providers.Generally, retail brokers and their clients prefer more liquid assets which lead to better fill rates and less slippage. When there is lack of liquidity on a certain market, slippage can occur – the order is executed at a price which is the closest available to the one requested by the client.
Liquidity is at the core of every broker’s offering. It is a basic characteristic of every financial asset – be it a currency, stock, bond, commodity or real estate. The more liquid an asset is, the easier it is to sell and buy on the open market. Foreign exchange is considered to be the most liquid asset class.Brokers can source liquidity from a single or multiple source, thereby delivering to their clients enough market depth for their orders to get filled. The main characteristic of liquidity is its depth, which will determine how quickly and how big of an order can be executed via the trading platform.Understanding LiquidityLiquidity can be internal or external depending on the size and the book of the broker. Companies which are large enough and have material client flows consistently are creating their own liquidity pools from the order flow of their clients, thereby internalizing flows and saving on costs to send customer orders to the interbank market. By doing that however they are exposing themselves to carry the risk on the trade.Liquidity providers can be prime brokers, prime of primes, other brokers or the broker’s book itself. Traditionally brokers are split between internalizing flows and offloading trades of their clients to different liquidity providers.Generally, retail brokers and their clients prefer more liquid assets which lead to better fill rates and less slippage. When there is lack of liquidity on a certain market, slippage can occur – the order is executed at a price which is the closest available to the one requested by the client.
Read this Term pools and enabling liquidity providers to deposit USDC on Centrifuge and the Aave protocol.
Until now, Aave users could lend and borrow cryptocurrencies, with interest rates adjusted based on the market demand. With this newly formed partnership with Centrifuge, a decentralized real-world asset (RWA) financing protocol, Aave successfully bridges DeFi with the trillion-dollar real-world asset market.
New Market To Offer More Opportunities For Users
Serviced by END Labs, Aave’s RWA Market will allow businesses to access financing using their “tokenized” real-world assets. Besides empowering SMEs and SMBs to raise funds without any mediators quickly, liquidity providers can diversify their portfolios and earn stable yields.
Earlier this year, Centrifuge introduced the first RWA market for Maker. Businesses can tokenize their invoices, trade receivables, and other real-world assets by leveraging Centrifuge. Once tokenized, participating businesses can post these tokens as collateral to access funding from Aave’s liquidity pools. This partnership with Aave will further help Centrifuge users tap into additional liquidity sources as and when needed.
With the launch of RWA Market, the world of traditional finance (TradFi) takes a step closer to the world of decentralized finance (DeFi). Depositors will be required to complete
Know Your Customer (KYC
Know Your Customer (KYC)
Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks involved with maintaining a business relationship. KYC processes are also utilized by companies for the purpose of ensuring their proposed customers, agents, consultants, or distributors are anti-bribery compliant. In an age of identity theft and myriad hacking, KYC has become a major emphasis by regulators.As such, banks, insurers, export creditors and other financial institutions are increasingly demanding that customers provide detailed due diligence information. These regulations had initially been imposed only on the financial institutions, having now extended to the non-financial industry, fintech, virtual assets dealers, and many non-profit organizations.Regulators Taking No Chances with Identities Regulated brokers in the retail industry are very stringent when applying appropriate KYC verifications after financial watchdogs worldwide have become stricter in monitoring their compliance with the procedure in recent years. Not only brokers use KYC, the procedure is also widely used by banks, and any financial companies that provide insurance or credit and require appropriate due diligence. Most major jurisdictions in the financial space mandate KYC requirements as well as all regulated brokers.The vast majority of these countries have adopted KYC standards as mandatory only during the past two decades. This has helped curb illicit behavior and has become a fixture of the industry.
Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks involved with maintaining a business relationship. KYC processes are also utilized by companies for the purpose of ensuring their proposed customers, agents, consultants, or distributors are anti-bribery compliant. In an age of identity theft and myriad hacking, KYC has become a major emphasis by regulators.As such, banks, insurers, export creditors and other financial institutions are increasingly demanding that customers provide detailed due diligence information. These regulations had initially been imposed only on the financial institutions, having now extended to the non-financial industry, fintech, virtual assets dealers, and many non-profit organizations.Regulators Taking No Chances with Identities Regulated brokers in the retail industry are very stringent when applying appropriate KYC verifications after financial watchdogs worldwide have become stricter in monitoring their compliance with the procedure in recent years. Not only brokers use KYC, the procedure is also widely used by banks, and any financial companies that provide insurance or credit and require appropriate due diligence. Most major jurisdictions in the financial space mandate KYC requirements as well as all regulated brokers.The vast majority of these countries have adopted KYC standards as mandatory only during the past two decades. This has helped curb illicit behavior and has become a fixture of the industry.
Read this Term) procedures and sign a subscription agreement with RWAM (RWA Market LLC) to participate in the marketplace.
Whitelisted Depositors can provide USDC liquidity to the market in return for aDROP, representing a pool of DROP tokens purchased by RWAM and distributed to them. Currently, there are thirty markets on Aave. With today’s launch of the RWA Market, the Aave ecosystem adds another seven permissioned markets. Accordingly, the Centrifuge-Aave partnership offers Aave users yield generation opportunities against stable, uncorrelated real-world collateral.
In the meantime, Centrifuge serves as the bridge between real-world assets and DeFi. An increasing number of businesses are using Centrifuge to access financing, which wasn’t available in the TradFi space. The RWA Market will unlock a new source of liquidity for Centrifuge users by adding Defi composability between Aave and Tinlake, Centrifuge’s asset-backed lending dApp.
As part of the launch, Centrifuge is also offering additional token rewards. The platform supports a wrapped version of its native CFG token as a reward for signing up and plans to distribute 9,250 tokens per day.
Source: https://www.financemagnates.com/thought-leadership/aave-connects-with-traditional-finance-ecosystem-via-centrifuge-partnership/