With its deep liquidity and rate stability, Aave is transforming into DeFi's benchmark for reference rates. We've published a blog post covering how this makes Aave central to the convergence of DeFi and TradFi. Read it below ↓

The financial system relies on benchmark rates like SOFR and the federal funds rate to price everything from mortgages to corporate bonds. They are the gravitational center of global capital markets. DeFi is fast approaching the point where it requires a similar foundation.

With hundreds of billions in all-time lending activity, DeFi needs a reliable way to understand the true cost of capital and earning rates. The same principles that make traditional benchmarks work apply here: scale, liquidity depth, and authentic rate discovery.

Aave is the only DeFi protocol that operates at such a scale. The protocol holds c. $59 billion in net deposits and is facilitating over $23 billion in active borrows. That means Aave's rates reflect the behavior of most of the DeFi lending sector.

Aave has become the go-to source of benchmark rates in DeFi organically, as teams like @CoinDeskMarkets, @capmoney_, @levelusd, @PlasmaFDN, and many others have chosen to use it for this purpose. When protocols need reliable, institutional-scale rates, they turn to Aave.

Reliable benchmark rates unlock sophisticated financial infrastructure that DeFi currently lacks. And Aave is in a unique position to be the only protocol with the liquidity depth to serve as a true benchmark.

Read the full post here: