Balance Wallet integrates with Aave, allowing Canadian users to directly lend and earn interest on their custodial assets.

GasFeeLady · 2026-01-22T01:00:09+00:00

Balance, as Canada's largest digital asset custody platform, announces the integration of the Aave protocol. Users can now lend and borrow directly through Aave while securely holding their assets. This integration breaks down the barriers between custody and DeFi lending, offering users more flexible asset utilization combined with security and profitability.

GasFeeLady

2026-01-22 01:00:09

Abstract generation in progress

【Crypto World】Balance, the largest digital asset custody platform in Canada, recently announced the official integration of the Aave protocol. What does this mean? Platform users can now directly lend and borrow assets stored in their offline wallets or hot wallets through Aave and earn yields — no more transferring coins back and forth.

This integration breaks down the barriers between custody and DeFi lending. For users, it means an additional way to generate income — assets can be securely stored on Balance while participating in Aave’s interest-earning mechanism. This model is a relatively cutting-edge attempt in the North American market, combining institutional-grade custody security with the flexibility of DeFi yields.

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FOMOSapien

· 22h ago

Finally, a platform has realized this point. Seamless integration of custody + DeFi should be like this. Balance's recent moves are really comfortable; holding coins can also generate interest, and there's no need for frequent deposit and withdrawal hassles anymore. Canadian players are in luck. This kind of combined approach is rare in North America. But I just want to ask... Is there any security risk? Would integration actually increase the risk? Earning interest isn't anything special, but being able to operate directly on the custody account is indeed a selling point. This is what product thinking is about—combining the advantages of DeFi and traditional custody. Honestly, the combination of institutional-grade + yield is just my cup of tea. I'm just waiting for it to follow domestically.

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LayerZeroHero

· 23h ago

Custody + Aave direct connection... This architecture needs to be carefully broken down. User asset flow, smart contract interaction logic, potential flash loan attack vectors—these details all need to be followed up and verified. North America’s move is good, but the real test lies in practical data—can the borrowing and lending rates, slippage, and liquidation mechanisms hold up?

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DaoResearcher

· 23h ago

It is worth noting that this hybrid model of custody + DeFi actually exposes a key issue—the asymmetry of liquidity incentive mechanisms from a Token economics perspective. According to the white paper, Aave's interest rate curve shows obvious vulnerabilities under high collateralization ratios. Based on on-chain data, whether Canadian users' funds can support this system remains unknown. What are the assumptions for this hypothesis to hold? From a governance perspective, Balance should publish DAO voting records; otherwise, how can we ensure that these decisions are not manipulated by certain large holders? I recommend reading Aave's risk parameter governance proposal first, and you'll understand why I have reservations about the security of this integration. Isn't this just a compromise where institutions want to do DeFi but are afraid to go fully on-chain? It's quite clever, I must admit. Wait, where are the fault tolerance boundaries between the custody layer and the DeFi layer? If a black swan event occurs with Aave, what is the scope of Balance's insurance coverage?

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