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• ByBit, Mantle, and Aave have entered into a strategic collaboration to significantly enhance the accessibility of Decentralized Finance (DeFi). 
• The collaboration is expected to boost the activities of Aave’s lending pool by reducing transaction costs and latency. 

The world’s second-largest crypto by trading volume, Bybit, has entered into a strategic partnership with decentralized finance protocol Aave and distribution and liquidity layer for Real World Assets (RWA) Mantle to advance the accessibility of the Decentralized Finance (DeFi) industry.

Details About the Mantle, ByBit, and Aave’s Partnership

According to the press release published by ByBit, this collaboration led by TokenLogic would see worldwide users benefiting from new on-chain liquidity channels. Reviewing this report, CNF discovered that Aave, under this partnership, would launch on Mantle Network.

Technically, the users of the decentralized finance protocol would have the benefit to access Mantle-powered tokenized assets. Not just that, MNT-based yield incentive programs would be officially introduced in the Aave pool. While this is meant to encourage and reward early participation, the report also points out that the program would strengthen asset utilization and ensure that a healthy liquidity formation is enabled in the Mantle ecosystem.

Commenting on this, an advisor at ByBit, Emily Bao, disclosed that this collaboration exists as a crucial step towards the effort to make decentralized finance more scalable.

By combining Aave’s proven liquidity engine with Mantle’s high-performance Layer-2 and Bybit’s worldwide market reach, we are building a unified financial experience that bridges CEX liquidity with the next generation of on-chain markets.

Joining the conversation, the founder of Aave Labs, Stani Kulechov, also highlighted that the deployment on Mantle and the global distribution of ByBit would connect Institutional-grade infrastructure with “Aave’s 24/7 liquidity”. Additionally, Kulechov stated that this move would make on-chain finance available at a global scale for institutions worldwide.

Individually, ByBit would contribute to this accessibility through its direct connectivity between its collateral management, centralized liquidity, and on-chain DeFi market. According to the post, ByBit provides a pathway for more than 70 million users.

The layer 2 infrastructure of Mantle is also expected to effectively enhance Aave’s lending pool through the reduction of transaction costs and latency. On top of this, it would provide support for the high-throughput markets. Aave’s involvement would equally establish the needed foundation of composable DeFi strategies, according to the report.

The founder and CEO at TokenLogic, Matthew Graham, also expressed his excitement about how users could benefit from the new liquidity sources and efficiencies.

Deploying Aave on Mantle represents an important milestone in expanding our protocol across high-throughput networks to make DeFi win. We’re excited to see a lot more users benefit from the efficiencies and new liquidity sources unlocked through this integration with Mantle and Bybit.

In the midst of this development, Aave has proposed a new multi-chain strategy to close the low-performing V3 markets, as indicated in our recent coverage. Also, its stablecoin GHO is expected to be listed on ByBit, making this its first tier one listing.