Edge wallet continues to show how sharp it is.
The team at Edge Wallet have announced a new collaboration with AAVE for the platform that continues to be a powerful DeFi interface for the common man. This new collab will make it easier for users to take out Bitcoin collateralized loans and put those borrowed dollars directly into their accounts. The one-step process will be done by utilizing the AAVE protocol.
Aave Loans will be integrated onto Edge as the company continues to seek ways for creating a decentralized economy. Edge speaks on retail investors and the hundreds of millions that have been lost by them at the hands of crypto lenders that are still centralized.The team says they have a solution to stop life savings being depleted overnight.
If the lender is a centralized one then there is collateral taken , mostly in the form of crypto. The lender then issues stablecoin or dollars in return for that collateral. As a centralized entity the lender will then lend out that collateral to earn a yield. This only works if the borrower of the loan is able to pay back that debt. On a large scale a default can domino and cause more borrowers to default and ultimately make retail investors pay for the issue.
The structure of these loans are taken out via smart contracts. A user will simply deposit the collateral, collect the stablecoins and return the loan when they can. The smart contract will hold onto the collateral until then but no one entity does. This may sound simple but the issue is a big one and the current process makes it too difficult for users when they want to actually make use of their assets and not sell.
Aave has been natively integrated into the interface of Edge and the process has been completely simplified. The benefits of using Aave include being fully self-custodial, having rates as low as 1.3%, being able to use the app and do things in one go, having the ability to sell stablecoins directly to the bank account , and paying things on your own terms. There are even push notifications to remind you if collateral needs to be added as well as support for the mainnet BTC.
Currently you can sign up for a try of the product here