CASE STUDY

Sentora’s $100M ETH On-Chain AAVE Loan

Sentora’s $100M ETH On-Chain AAVE Loan

Bootstrapping crypto’s largest money market with privately sourced capital and a custom structured loan
Bootstrapping crypto’s largest money market with privately sourced capital and a custom structured loan

Executive Summary

Executive Summary

Aave and Lido partnered with Sentora to bootstrap liquidity for Aave V3 Lido ETH markets. Sentora facilitated a $100M fixed-yield loan via non-custodial smart contracts, resulting in 33,000 ETH supplied, doubled staking returns, and an additional private investor tranche. This initiative demonstrated efficient capital mobilization and real-world DeFi impact.

Client Overview

Client Overview

Aave is a leading decentralized finance (DeFi) protocol that enables users to lend and borrow cryptocurrencies without intermediaries. Launched in 2020, it operates on multiple blockchains including Ethereum, Polygon, and Avalanche, allowing users to deposit assets into liquidity pools to earn interest or borrow against their collateral.

Lido is a liquid staking protocol that allows users to stake their cryptocurrency while maintaining liquidity. Launched in 2020, when users stake ETH through Lido, they receive stETH (staked ETH) tokens that represent their staked position and can be used in DeFi applications while still earning staking rewards.

Key Objectives

Key Objectives

Bootstrap liquidity for AAVE V3 Lido ETH markets in a compliant while while guaranteeing returns and transparency to private investors and AAVE end users

Our Approach & Solution

Our Approach & Solution

  • A fixed-yield loan — facilitated by Sentora’s (formerly ITB) non-custodial smart contract suite of institutional DeFi solutions to lock ETH for three months.

  • Supply capital to Aave v3, with all lenders receiving aETH tokens for collateral.

  • Base APY was generated by real-yield borrowing/lending, with Aave revenue topping up to the ETH-denominated APY offered to lenders.

Outcomes and Business Impact

Outcomes and Business Impact

  • 33,000 ETH sourced and supplied to AAVE 

  • Double the returns of normal ETH staking with principal and interest returned to the lenders at the end of the term

  • Second private tranche of ETH investors in addition to initial 33k ETH

Sentora's Advantage

Sentora's Advantage

Sentora blends institutional capital formation with purpose-built, non-custodial smart-contract infrastructure to deliver transparent, compliant liquidity at speed. For Aave V3’s Lido ETH markets, this playbook structured a $100M fixed-yield loan with clear term mechanics and reporting, sourced 33,000 ETH in the first tranche, doubled staking-level returns for lenders, and attracted an additional private tranche. By aligning incentives across protocol, lenders, and market makers—and actively managing risk and execution—Sentora turned a complex liquidity objective into a measurable outcome, proving a repeatable model for on-chain credit that scales.

Publication & Assets

Publication & Assets