Empowering DeFi Investors: Improve Lending & Borrowing Strategies with Powerloom’s Aave V3 Data Market
Are you sure you are making the right decisions on DeFi products?
In the presently rich ecosystem of decentralized products, most DeFi protocols and apps depend on centralized data sources to present their status and activity back to users, which defies the intended nature of web3 usage and adoption at scale. This greatly affects them when it comes to the end user’s confidence in activities like exchanging, lending, borrowing, etc. Decision-making heavily depends on centralized data sources, and there is not much of an option other than to believe that the calculations behind the reported numbers are accurate and precise. This dependency may result in poor strategies based on reported data and ultimately impair the user experience, where the expected returns and profits may be disproportionately mismatched compared to the final outcome of such activities.
Powerloom has reached a new milestone by providing a decentralized, verified way to access trade information on Aave through its decentralized data network. This expansion is a pivotal moment in the history of DeFi towards cleaner trading strategies, where both the platform and its data sources are decentralized. This integration is more than just an upgrade in terms of supported data markets; it marks an evolution in the experience of traders on Aave, whether individual or institutional, by ensuring that the operational data—from asset prices to liquidation pools, is sourced entirely from decentralized nodes. We can verify all reported values retrospectively while executing a trade efficiently without worrying about the precision of the underlying data used to make the trading decision.
What is Aave?
Aave is a decentralized non-custodial liquidity protocol where users can participate as depositors or borrowers. Depositors provide liquidity to the market to earn interest, while borrowers can borrow in collateralized or uncollateralized assets and build applications.
Read more about Aave here.
How does Powerloom infrastructure work for data sources for Aave?
The Aave data market seeded by Powerloom and powered by Snapshotters captures, aggregates and makes available critical data points from Aave's smart contracts. This data is then rendered viaa front on the Dashboard to provide users of the Aave protocol with actionable metrics. This implementation is a testament to the composable nature of the Snapshotter Node and the Powerloom data network's flexibility in capturing a diverse range of data points.
The Dashboard is hosted at aave-v3.powerloom.io/
Build with Aave Usecase
Building on top of the Aave use case with Powerloom is remarkably straightforward. Powerloom has seeded major data points that can be plugged and played into your application, and quickly get started with the available data sources.
The data points are listed here.
These data points can help you in building applications with much more trust and accuracy.
The most remarkable aspect is that you can extend the current Aave V3 implementation however you want, depending on your requirements. If you want to set up a full node to participate in the Powerloom Aave V3 data market, get started here
Conclusion
Each new data market seeded by Powerloom aims to reshape the ecosystem of data applications on Web 3. We ultimately wish to advance toward a future where DeFi and data applications are open, autonomous, and devoid of central oversight.
About Powerloom: The Composable Data Network for Web3
At the forefront of onchain data protocols, Powerloom serves the evolving needs of smart contract-based applications in sectors like DeFi, GameFi, and NFTs. Our approach incentivizes consensus on state transitions and event emissions, transforming raw data into a structured and easily accessible format. Powerloom is committed to decentralization, offering a lower entry barrier. We make it feasible for more ecosystem participants to contribute to and benefit from the network.