Aave and Bitso USDC Prime Differ on Lending Structure and Withdrawals
Edited by Steinar Vigdel Kolnes, Editor, Oslo
Direct Aave deposits and Bitso’s Morpho-based USDC Prime vault use different lending structures, but neither guarantees immediate USDC withdrawals.
Aave and Bitso USDC Prime offer different structures for USDC lending, according to The Defiant. The distinction centers on where deposits earn returns and who directs their allocation.
A direct deposit into Aave earns through a single reserve. Bitso’s USDC Prime instead uses a Morpho vault, with a curator responsible for allocating funds.
The withdrawal caveat applies to both: holding a balance does not guarantee that the full amount can be withdrawn immediately in USDC. Their differing allocation models do not remove that limitation.
Source: The Defiant
