Aave founder hints that voting will bring fee discounts and rewards to stakers
Briefly:
• Aave founder Marc Zeller announced a possible vote on Aave's "fee conversion" that would reallocate $60 million in annual net profits to owners.
• Aave DAO supports adjusting the staking fee of GHO stablecoin to maintain its anchoring stability.
• This move aims to enhance staker rewards and compete with DeFi protocols such as Frax Finance and Uniswap.
Marc Zeller, the founder of the Aave Chan Initiative, expressed the possibility of voting on the “fee conversion” of the Aave DeFi (decentralized finance) platform. Zeller’s post on This move is part of a broader discussion to incentivize participation and investment in the Aave ecosystem.
Aave DAO has recently made some adjustments to the staking fee structure of the Aave stablecoin GHO to maintain the anchoring stability of the stablecoin. Zeller’s announcement signals the protocol’s intention to compete with Frax Finance and Uniswap DeFi protocols through continued efforts to improve staker rewards, a new first use case for fee distribution design.
Aave proposes to establish a security fund for stakers’ income
Aave stakeholders are delivering this outcome every day. Zeller had already confirmed this in a tweet in March, where he floated the idea of establishing a security fund, the revenue of which would be paid out to stakers. Such measures not only increase the attractiveness of staking, but also bring more profits to stakeholders. According to Zeller, this initiative is making the network more secure, stable, and accurate through an enhanced community of stakeholders.
It’s hard to imagine that Frax Finance and Uniswap are currently implementing their fee conversions. Most DeFi protocols are also focusing on user needs, proving this shift towards paying users adequate fees and enhancing platform security. Distributing fees to users could be the next step for the platform, alongside protocols that currently have this model.
Skywards proposes integrating sUSDe into Aave V3
In a related development, DeFi entity Skywards proposed integrating USD sUSDe into Ethereum’s Aave V3. This proposal, currently in the provisional inspection stage, aims to enhance the Aave protocol and provide new assets and stable income opportunities through cooperation with entities such as Chaos Labs. The integration demonstrates the company’s increasing focus on expanding the platform’s offerings and ensuring robust risk management through partnerships with entities such as Chaos Labs.
Skywards’ participation highlights Aave’s community-focused approach to governance and decision-making. sUSDe’s proposal not only introduces a new asset to the ecosystem, but also highlights Aave’s commitment to enhancing the platform through a collaborative, transparent process. This approach ensures continuous improvement and responsiveness to the needs of Aave users and stakeholders.
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