Lending Protocol Aave Eyes Tokenized Mortgages With Launch of V2

Tokenized mortgages may be coming to decentralized finance (DeFi) following Aave v2’s specification announcement Friday.

Aug 14, 2020 at 5:53 p.m. UTC
Updated Sep 14, 2021 at 9:44 a.m. UTC

Decentralized money market Aave has released specifications for version two of its protocol as the project eyes $1 billion locked under contract, according to DeFi Pulse.

  • Aave will partner with real estate tokenization firm RealT to bring home mortgages to DeFi. RealT did not return questions for comment by press time.
  • v2 will also include transaction fee optimizations such as native support for smart contract GasToken
  • As reported by CoinDesk, Aave announced plans to transition to a fully autonomous and decentralized protocol through its “genesis governance” and Aave Improvement Proposals (AIP) scheme.
  • “V2 takes DeFi composability beyond what we have seen,” Aave founder Stani Kulechov told CoinDesk in an email. For example, v2 will “introduce the ability to swap debt from one currency to another and the ability to swap collateral without returning the loan," he said.

This article was updated to include a comment from Stani Kulechov.


The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.