A Look into Matrixport’s Integration with AAVE Protocol

3 min readFeb 26, 2021

Matrixport will be rolling out a new feature in the APP, integrating CeFi and DeFi to better support the increasing demand for DeFi, which has been popularized by Aave’s lending protocol and AAVE token.

A common question from many newcomers to Matrixport: how to minimize the knowledge gap and simplify the participation in DeFi such as Aave?

As we all know, decentralized wallets are required in order to access the financial service truly deployed on the blockchain or DeFi projects. However, it is quite a challenge for newcomers to learn about the concept of private key, smart contract, gas fee, etc., let alone to make sure that they are sending the right tokens to the right places at the right time and to protect their crypto assets against attacks.

With Matrixport’s mantra ‘Make crypto easy for everyone’, Matrixport aspires to enable a more open and equal financial system using blockchain technology. By offering an interface similar to the traditional finance applications, users may access Aave in a much quicker and simpler manner.

Before we start, here’s a little bit of context if you haven’t heard about the Aave Protocol yet.

What is Aave?

Aave is a decentralized non-custodial liquidity market protocol enabling users to participate as depositors or borrowers. Depositors earn a passive income by providing liquidity to the market, while borrowers are able to borrow in an overcollateralized (perpetually) or undercollateralized (one-block liquidity) fashion.

Here is how the integration works:

Through direct access to the Aave portal via Matrixport APP, users can browse through the choice of assets and the annualized yield of each, then choose the one that best suits their needs. ETH and stablecoins are supported at the moment.

This integration with Aave saves Matrixport’s users the hassle of interacting with the protocol by generating and learning to use decentralized wallets, and at the same time offers a DeFi experience that is both seamless and transparent.

Security & Custody

Matrixport’s security is powered by Cactus Custody which manages private keys in the industry’s highest level of HSMs and its warm and cold storage infrastructure located in bank grade vaults across three continents. Its segregation of duty and zero-trust system design removes dependence on any single individual, guaranteeing asset security and high availability.

Cactus Custody has also announced in January 2021 a powerful new feature — DeFi Connector, which offers clients a seamless and secure connection to the versatile DeFi world; therefore, maximizes yield and expands the usage of the asset under custody. Moreover, AAVE is one of the supported assets and enables clients to make interactions using this new feature.

Looking towards the future

The integration of DeFi and CeFi, which provides a frictionless user experience, improved liquidity and higher level of participation in DeFi, is a step forward for both Matrixport and AAVE.

The paths of DeFi and CeFi are crossing. Ease of use, service, transparency and product versatility, each brings the best of what it can offer to the ultimate users.

You can also join the Aave Discord, or check out their website to learn more!

Aave Discord: https://aave.com/discord

Aave Twitter: https://twitter.com/AaveAave

A Look into Matrixport’s Integration with AAVE Protocol

Written by Matrixport