Following connected moves by other DeFi protocols, Aave (AAVE) will be next to explore the distribution of DAO profits to token holders. In a recent put up on X, Marc Zeller, founder of the Aave Chan Initiative, acknowledged that Aave may per chance well well well also merely retain a vote on activating a ‘fee switch’ to again AAVE token holders next week.
“Temp take a look at to immediate ‘fee switch’ next week,” acknowledged Zeller after highlighting the platform’s monetary health.
Primarily based on Zeller, Ave’s Treasury for the time being holds $50 million price of money equivalents for 2.5 years of operational costs, with accumulate DAO profits at roughly $60 million per year.
Zeller had previously acknowledged he would post a “temp take a look at to fee switch Aave stakers” as soon as 100 million GHO were minted.
Anyway, GHO cap & borrow fee will be raised next week doubling Aave DAO GHO income
Merit wETH was a success, GHO advantage snapshot & distribution next week.
As rapidly as we hit 100M GHO minted, I may post a temp take a look at to “fee switch” Aave stakers.
Moral employ Aave.
— Marc “Chainsaw” Zeller 👻 🦇🔊 (@lemiscate) March 24, 2024
The proposed fee switch follows Aave’s recent proposal to adjust the possibility parameters of the DAI stablecoin. Earlier this year, the Aave DAO accredited the staking fee adjustments for its stablecoin GHO, aiming to retain the token’s peg balance.
A a success vote would ogle Aave be half of the ranks of DeFi avid gamers bask in Frax Finance, whose community now no longer too prolonged ago accredited a proposal to immediate their fee switch. Uniswap may per chance be exploring connected avenues with ongoing discussions about enabling a fee switch mechanism.
Following the data, AAVE’s heed elevated by 5%, hiking from spherical $115 to $120, in step with info from CoinGecko.
