Aave is the latest DeFi project to give governance rights to its owners of tokens.
October 29th Aave display that the log management keys were transferred to the governance communities by their lead developers under the command of the owners of their logs character native utility LEND.
“Today marks a historic moment for the Aave Protocol: We have officially handed over the management keys of the Protocol to the governance, an important step towards decentralization!”
The community voted for Aave’s First Improvement Proposal (AIP), which started the LEND utility for token migration to the new AAVE governance token at a rate of 100: 1and then transfer of governance rights to AAVE holders.
AAVE’s total offering includes 16 million tokens, 13 million of which can be redeemed by LEND holdersThe remaining three million tokens are allocated to an “ecosystem pool”. In addition to voting in the AIPs AAVE holders can use their tokens to earn some of the protocol feesand they can also put the AAVE / ETH pair on balancers to earn BAL tokens along with trading fees.
AAVE tokens kept in offline storage can be used for voting in AIPs.
Aave was launched in January of this year and grew into a DeFi project as the sector began to warm up in the middle of the year.. The protocol facilitates the issuance of “flash loans” and describes itself as “the first unsecured loan option in DeFi”.
Liquidity providers pool funds that traders and bot operators can borrow to conduct arbitration and other profit-generating strategiesAs long as the required transaction can be carried out and the borrowed funds can be returned for transactions carried out within a single block of Ethereum (ETH), which takes approximately 20 seconds.
A commission of 0.9% is charged on the services achieved through the quick loanwhich will be distributed among the donors of the common fund.
Aave is currently the fifth largest DeFi protocol after Total Value Blocked (TVL) at over $ 980 million. However, Aave’s TVL has declined significantly since the peak of the DeFi bubble in August, down 42% from nearly $ 1.7 billion.