Meme Insider
Hey there, crypto enthusiasts! If you’ve been keeping an eye on the decentralized finance (DeFi) space, you’ve probably heard about Aave, a leading platform for lending and borrowing cryptocurrencies. Recently, Stani Kulechov, the mind behind Aave, dropped an exciting update on X that’s got everyone talking. Let’s dive into why Aave is being hailed as the best place to borrow USDC against Bitcoin on the Base network, complete with a juicy 25 bps bonus on cbBTC collateral!
What’s the Buzz About?
In a post on July 31, 2025, Stani shared a snapshot of Aave’s stats for USDC on Base, and the numbers are impressive. The image reveals:
- Total Supplied: 182.11M USDC (worth $182.09M)
- Supply APY: 5.44% (with a base rate of 1.00%)
- Total Borrowed: 157.65M USDC (worth $157.64M)
- Borrow APY (Variable): 7.04% (with a base rate of 2.00%)
These figures show a healthy liquidity pool where users can supply USDC to earn a solid 5.44% annual percentage yield (APY) or borrow USDC at a variable rate of 7.04%. But what makes this even more exciting is the additional 25 basis points (bps) paid on cbBTC collateral, which effectively lowers the net borrow rates. This perk is a game-changer for those looking to leverage their Bitcoin without selling it.
Why Aave on Base Stands Out
So, why is Aave on Base the go-to spot for this move? Base is a layer-2 scaling solution for Ethereum, known for its low fees and fast transactions. By integrating with Base, Aave offers a seamless experience for users who want to use their Bitcoin as collateral. The cbBTC (Coinbase Wrapped Bitcoin) adds another layer of flexibility, allowing you to tap into DeFi without leaving the Coinbase ecosystem.
The 25 bps bonus on cbBTC collateral is a smart incentive. For those unfamiliar, basis points are a way to measure interest rate changes (1 bp = 0.01%). This extra 0.25% reduces the cost of borrowing, making it more attractive than other platforms. It’s like getting a discount on your loan just for using Bitcoin as collateral!
How Does This Work?
Here’s a quick breakdown for newcomers to DeFi:
- Supplying USDC: You deposit USDC into Aave’s pool on Base. In return, you earn the 5.44% APY, which is paid out based on how much you’ve supplied.
- Borrowing USDC: If you have Bitcoin (or cbBTC), you can use it as collateral to borrow USDC. The variable borrow APY of 7.04% applies, but the 25 bps reduction kicks in with cbBTC.
- Collateral Benefits: By using cbBTC, you keep your Bitcoin’s value while accessing liquidity, avoiding the need to sell and potentially dodging capital gains taxes.
This setup is perfect for anyone holding Bitcoin who wants to stay active in the market without cashing out.
What the Community Says
The X thread lit up with reactions. Users like @aave chimed in with a simple “Based,” while others praised Aave’s versatility for both borrowing and supplying. Some even asked about the Aave token’s potential, hinting at future growth. The consensus? Aave’s move on Base is a solid play, with potential to drive more liquidity into the ecosystem.
Is This Right for You?
If you’re into crypto lending or looking to maximize your Bitcoin’s utility, Aave on Base is worth a look. The competitive APYs and the cbBTC bonus make it a standout option. However, always do your homework—DeFi involves risks like smart contract vulnerabilities or market volatility. Start small, explore Aave’s official site, and consider testing the waters with a smaller amount.
Final Thoughts
Aave’s latest offering on Base is a testament to how DeFi continues to evolve, blending traditional finance concepts with blockchain innovation. With a robust supply and borrow system, plus that extra 25 bps on cbBTC, it’s no wonder Stani and the community are hyped. Whether you’re a seasoned DeFi user or just dipping your toes in, this could be a golden opportunity to leverage your Bitcoin smartly.
What do you think about this move? Drop your thoughts in the comments, and stay tuned to meme-insider.com for more updates on the latest in blockchain and meme token trends!
