In an exclusive beta release of Edge, we’ve created the most disruptive and powerful Defi interface for the everyday user. Edge now supports the ability for users to take out Bitcoin collateralized loans and deposit borrowed dollars directly into their bank account. This happens all in one step and utilizes the popular Defi protocol, Aave!
The integration of Aave loans in Edge marks our next step toward creating a decentralized economy that enables people to retain complete custody and control over their funds.
Aave Integration in Edge
With the Aave integration in Edge, users are able to take out loans directly inside of Edge. Currently, other apps only support the AAVE token and let people connect to AAVE using third-party solutions like Wallet Connect or Metamask.
Other available solutions may let users earn yield through staking the AAVE token, but no self custody app lets users take out collateralized loans, and definitely not with the buttery smooth experience we’ve built in Edge.
Another notable feature that comes along with the Aave integration in Edge is that, when taking out a Bitcoin backed loan, Bitcoin (BTC) is automatically swapped into ETH or MATIC to pay for fees, and into wrapped Bitcoin (wBTC) for deposit into Aave pools as collateral.
There’s no need for users to jump through multiple hoops to swap their mainnet BTC for wBTC on Ethereum or Polygon, then post their wBTC as collateral – with Edge, all of this happens seamlessly with the tap of a single button.
A common use case of Aave collateralized loans is for users to take their borrowed stablecoin asset and transfer that to a custodial exchange service to sell that asset to their bank account. With Edge, liquidation of stablecoins into a user’s bank account is done automatically when a user takes out a loan. We’ve added support for multiple fiat exchange rails inside of Edge such that users never have to use a third-party custodial exchange, all buying, selling, and trading takes place inside of a user’s self-custody Edge app.
Commenting on the Aave integration, Paul Puey, our co-founder and CEO, said that “Edge has broken ground in delivering DeFi to the everyday user.”
“For the first time, we are delivering the experience you would normally have to go through CeFi or TradFi companies to get. Users will be able to deposit Bitcoin into Edge, and in one step take out a loan that is settled into their bank account. No need to swap coins, interact with Wallet Connect, or sign half a dozen transactions. Just pick your loan amount and slide to confirm! And best of all, avoid the centralized services that mismanage user funds and end up filing for Chapter 11 bankruptcy as a result,” said Paul Puey.
CeFi vs DeFi
As the fallout from a series of recent defaults spreads further throughout the crypto industry, there’s increased focus on decentralized solutions as an alternative to centralized finance entities that don’t let people control their funds.
The key difference between decentralized finance (DeFi) and centralized finance (CeFi) is that in DeFi it’s the users themselves who are responsible for managing their own funds and activities, whereas exactly the opposite is the case with CeFi.
Financial sovereignty of individuals is something we at Edge fully believe in and support, constantly introducing new products.
Aave collateralized loans in Edge is just one example of that, so stay tuned for more exciting updates.
Take out Aave loans in Edge in less than 1 minute
Taking out loans via the Aave protocol is just a few taps away on any mobile device with Edge app installed.
Sign up for beta access today at edge.app/crypto-loans
Only 100 spots are available on a first-come, first-served basis.