Decentralized perpetual futures exchange (perp DEX) Grvt said it has integrated the Aave lending protocol to let traders earn returns on collateral posted for margin while keeping their derivatives positions open.
The company said Thursday that the feature is designed to reduce the opportunity cost of margin collateral, which is typically inactive on trading platforms. Perpetual futures are crypto derivatives that track the price of an asset and do not expire.
“On most platforms, your capital can only do one thing at a time,” Hong Yea, CEO of Grvt, told Cointelegraph. “Your stablecoins either generate returns or are available to trade, but not both.” He said the integration aims to let users deposit once and use the same capital as active margin while earning credit returns.
The announcement comes as crypto derivatives remain a major source of fees within the decentralized finance sector. Data from analytics platform DefiLlama shows that DeFi protocols have generated more than $1 billion in quarterly revenue in recent periods, with derivatives exchanges contributing a large portion of that.
Top 20 revenue protocols excluding stablecoin issuers. Source: DefiLlama
On
Related: DeFi offender volume explodes above $1 trillion in record month to date
Capital efficiency becomes a competitive focus
Perpetual futures traders typically post stablecoins as collateral and leave them parked to meet margin requirements. At launch, Grvt said the feature applies to USDt ($USDT) collateral, which is converted 1:1 into deposits deployed in Aave’s credit pools.
“If there is a liquidation, we will take over their positions and liquidate as it would happen $USDT“Yes, to Cointelegraph. He said funds can be withdrawn from Aave to make redemptions in about 10 minutes.
Related: Aave surpasses $1 trillion in lending volumes amid institutional expansion
Returns come from Aave’s variable credit markets and fluctuate based on loan demand. Yea said Grvt will not capture any portion of Aave revenue “as of now,” adding that users may receive both loan returns and a share of platform fees.
On Monday, Curve founder Michael Egorov said DeFi protocols “cannot live without real revenue flowing,” arguing that sustainable returns should be tied to actual economic activity rather than token emissions.
Magazine: The 6 Strangest Devices People Have Used to Mine Bitcoin and Crypto