Aave Eyes Maple’s Syrup Stablecoins for Collateral

DeFi lending titian Aave is considering whether to onboard Maple's high-yielding "Syrup" USDT and USDC stablecoins as collateral assets for the Plasma and Core lending markets. The proposed Plasma integration has so far received unanimous approval in governance voting.

What's the Scoop?

• DeFi Lending Collab: Aave, the largest DeFi lending market in existence with over $40B in locked value, is considering a partnership with Maple, a smaller, but explosively growing lending market geared towards institutions, that would onboard syrupUSDT and syrupUSDC as collateral for its Plasma and Core (Ethereum) lending markets, respectively.
• Governance Progress: Aave token governance began voting to approve a Plasma syrupUSDT market on October 19; that proposal has exceeded the required quorum with unanimous consent and is slated for execution on October 23. In parallel, Aave governance forum discussions bode well for inclusion of syrupUSDC markets on the Ethereum Core market.
• Unlocking Syrup's Potential: If approved, the Aave proposals will enable borrowing against 150M syrupUSDT (~$165M) on Plasma and 150M syrupUSDC (~$170M) on Core at up to 90% loan-to-value rations. According to Coingecko, the combined market capitalization of Syrup USDT and USDC deposit tokens is approximately $1.65B, meaning Aave's lending markets could absorb up to 20% of circulating supply.

Bankless Take:

Aave continues to take an aggressive approach to onboarding long-tail dollar-pegged crypto on its Plasma and Ethereum Core core markets; the lending platform currently extends loans against $5.4B worth of Ethena synthetic stablecoins across both implementations. While Syrup stablecoins fit within Aave's growth strategy of onboarding high-yielding collateral, they're inclusion will also increase the risk profile of Aave's lending markets.