Blockchain technology firm BTCS is adopting DeFi protocol Aave for capital management and increasing its Ethereum assets.
BTCS Strategy Utilizing Aave
BTCS, a Nasdaq-listed company, deposited $100 million in Lido-staked ETH (stETH) on Aave at a 3% annual yield. The company also borrowed $30 million USDT from the protocol at a 5% rate. The borrowed funds were used to purchase additional ETH, which is staked at a 4% annual yield.
BTCS Position Among Ethereum Holders
Following their recent transactions, BTCS now holds nearly 56,000 ETH, placing them among the top ten ETH holders. This comes amid a general price surge in cryptocurrencies and increasing interest in ETH among institutional investors.
Growing Institutional Adoption of Aave
BTCS's actions highlight the growing institutional interest in using Aave for yield generation. Previously, the Ethereum Foundation also utilized Aave, borrowing $2 million in GHO. Aave is demonstrating significant deposit volumes, nearing the level of the 42nd largest bank in the US.
BTCS continues its asset management strategy through DeFi, reaffirming its goal to lead in the cryptocurrency industry. Aave is also gaining recognition from institutional participants, emphasizing its growing role in asset management.
