6 months ago
38 ARTICLE AD
The token value of AAVE increased by 5% following the announcement.
Following similar moves by other DeFi protocols, Aave (AAVE) could be next to explore the distribution of DAO profits to token holders. In a recent post on X, Marc Zeller, founder of the Aave Chan Initiative, said that Aave may hold a vote on activating a ‘fee switch’ to benefit AAVE token holders next week.
“Temp check to activate ‘fee switch’ next week,” said Zeller after highlighting the platform’s financial health.
According to Zeller, Ave’s Treasury currently holds $50 million worth of cash equivalents for 2.5 years of operational costs, with net DAO profits at approximately $60 million per year.
Zeller had previously said he would publish a “temp check to fee switch Aave stakers” once 100 million GHO were minted.
Anyway, GHO cap & borrow rate will be raised next week doubling Aave DAO GHO revenue
Merit wETH was a success, GHO merit snapshot & distribution next week.
As soon as we hit 100M GHO minted, I'll publish a temp check to "fee switch" Aave stakers.
Just use Aave.
— Marc “Chainsaw” Zeller 👻 🦇🔊 (@lemiscate) March 24, 2024
The proposed fee switch follows Aave’s recent proposal to adjust the risk parameters of the DAI stablecoin. Earlier this year, the Aave DAO approved the staking fee adjustments for its stablecoin GHO, aiming to maintain the token’s peg stability.
A successful vote would see Aave join the ranks of DeFi players like Frax Finance, whose community recently approved a proposal to activate their fee switch. Uniswap is also exploring similar avenues with ongoing discussions about enabling a fee switch mechanism.
Following the news, AAVE’s price increased by 5%, climbing from around $115 to $120, according to data from CoinGecko.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
Crypto Briefing may augment articles with AI-generated content created by Crypto Briefing’s own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight - and oversight - of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
