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Aave Would Like to Tokenize Tesla Cars, Aave’s Kulechov Shares This Idea with Elon Musk

www.coinspeaker.com 24 August 2020 10:48, UTC
Reading time: ~3 m

The partnership proposed by Aave’s Kulechov to tokenize Tesla cars must have been drawn from the determination to get a rub off on TSLA meteoric growth.

Ethereum based Decentralized Finance (DeFi) protocol Aave may well be on its way to tokenize Tesla Inc (NASDAQ: TSLA) cars as collateral. With the recent bullish run of decentralized finance innovations, Aave remains among the promising projects in the DeFi ecosystem

Aave co-founder Stani Kulechov made this intention known via a tweet addressed to Tesla CEO Elon Musk.

@elonmusk I would be excited some day to tokenize Teslas, allow people to use the cars as a collateral in @AaveAave to borrow $USDC and spend it for affordable mars trips. This is called DeFi and it's coming to improve finance.

— stani.eth 👻 (@StaniKulechov) August 20, 2020

From Kulechov’s advance to Elon Musk, it is obvious that the Aave chief intends to get himself involved in the Musk’s two companies, electric auto outfit Tesla (TSLA) and space travel ship manufacture outfit SpaceX.

While the proposition has seen positive feedback from cryptocurrency and DeFi enthusiasts, Elon Musk has yet responded.

Why Aave Finds Tesla Attractive

The proposed partnership by Aave’s Kulechov to tokenize Tesla cars must have been drawn from the determination to get a rub off on TSLA meteoric growth. As a project with the mission to reduce carbon emissions from auto vehicles, TSLA cars have a promising future demand.

The wall street tech firm delivered over 90,000 vehicles in the second half of 2020 and the increasing demand is projected to rise in the coming years.

Should Aave get associated with Tesla, future leaps in TSLA may bring about a corresponding surge in users that will need loans on the Aave protocol using the tokenized Tesla cars as collateral.

Another reason why Kulechov must have found to make this proposal to Elon Musk might have stemmed from an acknowledgment on the part of the charismatic CEO that the initiative behind Bitcoin’s creation and advancement is clever.

While he has made no further gesture with either Ethereum or its DeFi derivatives, a positive proposition might be a gateway for the CEO to steer his interests into the DeFi world.

Aave Protocol Has Bullish Fundamentals

As noted earlier, the Aave protocol has been adjudged to have a good DeFi fundamental and it is currently ranked by DeFi Pulse as the second-largest DeFi lending platform with about $1.9 billion locked.

The bullish positioning of Aave is backed by the head of DTC Capital, Spencer Noon who noted that the lending protocol is distinguished from others because it has grown without “extra incentives” such as liquidity mining. Commenting on Aave’s impressive growth within the last 90 days, Noon tweeted:

“One of the best signals of PMF in #DeFi is if a project can succeed w/o extra incentives (liquidity mining). Aave doesn’t have LM yet it’s still one of the biggest beneficiaries of new yield farming activity. At $1.26B TVL and only $759M mcap—the fundamentals are so strong.”

MultiCoin Capital’s managing partner, Kyle Samani also shared his thoughts on the potential of the Aave protocol’s governance token Aave which he claimed is ideal for long term investment.

Pending when and if Elon Musk will respond to Kulechov’s ambitious proposition, all eyes will be on the strides of the highly reckoned Aave DeFi Protocol.

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Author Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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