OKX announced the launch of Aave, a decentralized lending protocol, on X Layer. Now its users can earn passive income on idle crypto assets.
X Layer is OKX’s Ethereum-compatible Layer 2 network, built on top of Ethereum to process transactions faster and at lower cost.
Aave is the largest decentralized lending protocol by total value locked and net deposits. The platform handles 50%-60% of all DeFi lending. Approximately, Aave serves more than 120 million people globally. It has been operating on more than a dozen blockchain networks, and now OKX X layer is one of the supported networks too.
“By expanding to X Layer, Aave connects its liquidity to a growing ecosystem of users and applications, making it easier to earn, borrow, and build applications on the network,” said Stani Kulechov, Founder of Aave Labs. “Aave looks forward to continuing expansion across OKX’s products and extending access to their millions of users.”
This new integration helps OKX Wallet users access Aave on X Layer directly. No separate wallet setup or bridging (moving assets between blockchains) is required. The deployment runs on Aave v3.6.
What Users Can Do With Aave on X Layer
Users can supply assets to Aave and earn interest on them. Supported assets at launch are USDT0, USDG, GHO, xBTC, xETH, xSOL, xBETH and xOKSOL. Users keep custody of their tokens while supplying.
Users can also borrow against their crypto holdings instead of selling them. Borrowable assets are USDT0, USDG, GHO, xBTC, xETH and xSOL. Borrowing requires collateral, and no credit check is involved.
Decentralized peer-to-peer protocols like Aave is one way for crypto users to earn passive income from their stablecoin investments, as stablecoin issuers are prohibited from offering same functionality by US developing crypto legislation such as the Clarity Act.
Higher Borrowing Limits Through eMode
X Layer has six dedicated efficiency modes called eModes. These modes raise the loan-to-value (LTV) ratio, which is the share of a collateral’s value a user can borrow against.
The standard LTV on the network is 70%. For liquid staking pairs, such as xBETH to xETH and xOKSOL to xSOL, eMode allows borrowing at up to 88% LTV. For crypto-to-stablecoin eModes, the limit is up to 78%.
Integration With OKX Products
Users can deposit and manage funds on Aave X Layer inside OKX Wallet. They do not need to use Aave’s own interface.
Crypto enthusiasts can also trade aTokens on OKX DEX, OKX’s decentralized exchange. aTokens are tokens that represent a user’s supplied position on Aave. Some examples are aUSDC, aWETH and aUSDT. Trading them does not require withdrawing from Aave first.
To get started, users connect their wallet, select X Layer as the network and begin supplying or borrowing.
