Take a fresh look at your lifestyle.

Aave wants to tokenize Tesla


It seems almost a provocation made by the founder and CEO of Aave, Stani Kulechov, addressed to Elon Musk and Tesla, wanting to use the cars as a guarantee of the Aave protocol:

It should be noted that the Aave protocol, dedicated to lending and borrowing, makes it possible to provide liquidity to several different sets of assets, and it also allows to borrow assets by paying interest, in addition to a flash loan function.

According to the CEO, his idea would be to use a physical asset, such as Tesla cars, so that users can borrow a percentage of its value to use, without having to sell their car.

Aave and Tesla, it's not a meaningless proposition

Someone might make the accusation that this type of system would not be at all conceivable and practicable, especially with a car, and yet it is entirely possible and has already been tried. We are talking about the pledged institution, that is, a user brings his material property, after an evaluation of the object, he is given a sum of money with respect to the object left, with the obligation to return the sum in a specified time including interest .

In this case, it would not be difficult to imagine a engagement bench 4.0 in which people abandon or sell their assets in exchange for cryptocurrencies using the physical object as collateral, with a smart contract linked to it.

The asset itself would be tokenized, making it digital, which with an NFT (Non Fungible Token) would not only be feasible but would also open the door to the sale of a physical asset through an NFT.

It is a long-term investment, a sector that does not currently exist. Therefore, it is difficult to predict the development of such a system, but it is certainly possible to do a similar project. In fact, it could be the next industry to apply decentralized finance to the material world.

Leave A Reply

Your email address will not be published.