PayPal USD stablecoin ventures into DeFi

The community Aave vote currently for theintegration from stablecoin launched by PayPal. The arrival of PYUSD in the DeFi should enable it toincrease sa liquidity.

The decentralized finance platform Aave opened a ‘temp check’ vote on Monday for an AIP aimed at integrating PayPal USD (PYUSD) to its Ethereum V3 pool.

According to the proposal posted by mv Trident, adding PYUSD to Aave will create synergies between the protocol and the token, offer Aave users an additional stablecoin option and strengthen the relationship between PYUSD and GHO, Aave’s native stablecoin. A PYUSD/GHO pool is planned.

We propose to integrate PYUSD outside the isolation mode but without collateral properties. If the community feels that PYUSD as collateral is immediately viable, we are prepared to support this role from day one; otherwise, after PYUSD expires, Aave governance may propose collateral activation for PYUSD at a later stage,” the AIP reads.

Voting closes at the end of the week, Thursday December 11.

Launched in the summer of 2023 on the Ethereum blockchain by the online payments giant in partnership with Paxos, PayPal USD today has a market cap of around $270 million. A figure well below the largest stablecoins, such as USDT and USDC, whose market cap is in the tens of billions of dollars.

PYUSD is offered on several crypto exchanges and made its debut on the Curve protocol in December. While demand for the token remains low, its deployment in DeFi could enable it to increase its liquidity.

This autumn, PayPal received a summons to appear before the US regulator SEC in connection with its stablecoin.

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