Luno, the cryptocurrency investment app, has announced that it introduced three new virtual currencies to invest in that are frequently used by decentralized finance (DeFi) traders and investors.
Aave (AAVE) aims to connect lenders and borrowers in a direct manner, without requiring intermediaries or third-parties. AAVE is supported by one of the largest crypto lending platforms, with presently more than $6 billion secured across several different blockchain networks.
As noted in the update from Luno, Curve (CRV) allows investors to trade stablecoins and other crypto-assets for competitive fees. Curve has been able to gain popularity and widespread usage as a liquidity provider for stablecoins such as USDC and Tether (USDT).
As explained by the Luno team, MakerDAO enables investors to temporarily lock up their crypto-assets in exchange for Maker’s stablecoin, know as Dai. It has attracted major investors such as Andreessen Horowitz, one of the most prominent VC firms.
Christo de Wit from Luno notes:
“DeFi is an innovative, automated system that enables financial services like loans, savings, insurance or trading on public blockchains. By adding these new coins, which are prominent in the emerging world of DeFi, customers can learn more about DeFi which has the potential to change finance. As cryptocurrencies are more than just monetary coins and form the building blocks of a new decentralised digital economy, our customers are keen for opportunities to diversify their crypto portfolios in this innovative space.”
As explained by the Luno team, digital currencies reward participants in DeFi ecosystems for performing activities that keep the system running securely. These DeFi sector enable and facilitate different ecosystems financial services to gaming.
de Wit stated:
“Luno undertakes a thorough process when adding assets for customers to invest in or trade, based on standards for safety and legitimacy. Luno however does not ensure the future potential of any investment. We provide clear and unbiased content to aid an investor’s decision-making, but we tell our 12 million customers to always do their own research and exercise good judgement before investing. Due to the volatile nature of cryptocurrency, we advise clients to not invest more than they are prepared to lose.”