Cryptocurrencies

Could Aave (LEND) tokenize Tesla? – Cryptocurrencies

Tesla and Bitcoin (BTC): the magical stock market combination of the 1920s. DeFi now wants to seduce Elon Musk to let him play with his futuristic-looking electric cars. The proposal is interesting, it remains to be seen whether the great Elon Musk is ready to once again raise a DeFi to his size.


Tesla’s virtual vehicles

The CEO of Aave (LEND), Stani Kuchelov, recently made a suggestion on a possible tokenization of You’re here in the DeFi protocol.

Aave Tokenization Elon Musk Tesla

Aave is the second largest DeFi platform on the market with an estimated Total Value Locked (TVL) of $ 1.25 billion.

The platform is essentially a Peer-to-Peer loan service, particularly popular for its system of flash loans : the next version will see the addition of many features to hope to convince new users.

The tweet of Kuchelov did not refer to the company’s stock You’re here rather, vehicles produced by the company that would be used as collateral for obtaining a loan.

DeFi impossible for Tesla?

It is difficult to know if this proposal was a joke or if Kuchelov was talking seriously.

Some say that this idea is impossible to implement because of the innumerable technological difficulties that this would entail.

However, more or less similar practices currently exist, such as guaranteed loans offered by certain microfinance institutions: in practice, a person who wishes to obtain a loan, can present any good to be valued as collateral to determine the amount that the institution can lend it.

It is not difficult to imagine a system where an individual would use their personal assets as a deposit to obtain cryptocurrencies, with an associated smart contract to protect against a possible retraction by one of the 2 parties.

The asset could be tokenized through a non-fungible token (NFT) and, the warranty could be sold through the NFT.

It is impossible to say at this stage if such a project could be viable but, it could well be the next axis of development of DeFi.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

A secure loan system, accessible to a greater number of applicants and without collateral? Am I asking too much? Can the cryptosphere meet such a DeFi? A tokenization of a Tesla will allow small wallets to afford 1 hundredth or 1 thousandth of Elon Musk’s jewel. This partnership therefore promises to be under win-win auspices despite the technical difficulties anticipated by the most skeptical. Such a partnership would be electrifying for both parties.

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