Aave joins eToro platform

Cryptocurrency-backed peer-to-peer lending platform Aave has been added to the eToro investment platform.

It is one of four new crypto-currencies which have joined the platform, bringing the total number of cryptoassets on eToro to 23.

As well as Aave, eToro has added Compound, Yearn.Finance and Decentraland.

Aave coin is the largest of the new additions with a market cap of $5.3bn (£3.74bn). It supports the Aave protocol which trades in “flash loans” – peer-funded loans which are borrowed and repaid in quick succession without the need for collateral.

In February 2021, the volume of these flash loans reached $2.2bn, generating nearly $2m in fees.

Read more: Aave launches higher risk, higher return option for investors

Compound is an “algorithmic, autonomous interest rate protocol” which has a market cap of approximately $4bn.

Meanwhile, Yearn.Finance and Decentraland have market caps of $2.1bn and $1.3bn respectively.

“eToro’s plan this year is to expand our range of investments so users have as wide a range of choices as possible available to them and the opportunity to diversify their portfolios across a wide range of use cases,” said Doron Rosenblum, VP of business solutions at eToro.

“With the addition of these four tokens we are continuing on that journey, and we expect to add more tokens later this year.

“As always, we urge investors to do their research. Just as each stock has a business case, each crypto has a whitepaper that details its use case. Be cautious and remember the basic tenets of investing; diversify and only invest in markets and instruments with which you are familiar.”

Earlier this year, eToro added Dogecoin, Chainlink and Uniswap.

Read more: Aave users can now move their loans onto the new marketplace