Advertising
News4Social English
  • News
    • National
    • Education
    • Review
    • Space
    • Environment
  • Health Trends
  • Business
  • Lifestyle
  • Travel
  • Cryptocurrency
  • Sports
  • World
No Result
View All Result
  • News
    • National
    • Education
    • Review
    • Space
    • Environment
  • Health Trends
  • Business
  • Lifestyle
  • Travel
  • Cryptocurrency
  • Sports
  • World
No Result
View All Result
News4Social English
No Result
View All Result
Advertising
Home Cryptocurrency

Aave proposes major economic overhaul to enhance revenue and sustainability

March 5, 2025
in Cryptocurrency
Reading Time: 2 mins read
Aave proposes major economic overhaul to enhance revenue and sustainability
296
SHARES
1.4k
VIEWS
Share on TwitterShare on Telegram

Advertising

Aave proposes major economic overhaul to enhance revenue and sustainability

Advertising

Advertising

Aave has proposed a comprehensive update to its economic framework, focusing on revenue distribution, staking incentives, and liquidity management.

The proposal, introduced by Aave Chan Initiative (ACI) founder Marc Zeller on March 4, is considered a pivotal development in Aave’s evolution. He stated:

Advertising

“We consider it the most important proposal in our history.”

According to the proposal, Aave has consistently expanded its market presence over the past two years, building a strong financial foundation.

Despite fluctuating market conditions, Aave continues to generate robust revenue, with the DeFi protocol’s liquid reserves surging by 115% to reach $115 million. This strong financial position enables Aave to proceed with its tokenomics upgrade while staying competitive.

A crucial aspect of the proposal is the establishment of the Aave Finance Committee (AFC), a governance-backed entity responsible for managing treasury funds and liquidity strategies.

The AFC will oversee financial allocations within Aave’s ecosystem, ensuring sustainable revenue distribution.

The initiative includes contributions from key stakeholders, including Chaos Labs, TokenLogic, Llamarisk, and ACI.

RelatedPosts

Chainlink (LINK) Price Prediction 2025, 2026-2030 

Chainlink (LINK) Price Prediction 2025, 2026-2030 

May 15, 2025
Analyst Who Called XRP Price Surge At alt=

Analyst Who Called XRP Price Surge At $0.5 Says Surge To This Level Is Coming

May 15, 2025

Buyback strategy

The AFC will manage a six-month AAVE buyback program to enhance token value and ecosystem sustainability, allocating $1 million weekly. Meanwhile, the program may expand based on Aave’s financial health, pending further governance approval.

The AFC can execute purchases directly or collaborate with market makers to acquire AAVE from secondary markets. These tokens will then be distributed to the ecosystem reserve.

TokenLogic, a financial services provider for Aave DAO, will structure buybacks based on the protocol’s overall budget. The goal is to eventually match—and surpass—all protocol expenditures related to AAVE while maintaining a cautious treasury approach.

With new revenue streams expected in 2025, the AFC may propose increasing the buyback budget. TokenLogic will determine which assets finance these purchases, adjusting strategies monthly based on Aave’s treasury composition.

Introducing ‘Umbrella’ for risk mitigation

Aave currently incurs significant liquidity costs, amounting to $27 million annually. To optimize capital efficiency, the proposal suggests consolidating staking and liquidity management under a new system called Umbrella.

This mechanism is designed to provide unmatched protection against bad debt—an area where competitors have largely retreated.

By offering this safeguard, Aave strengthens its position, particularly for institutional participants wary of on-chain risks.

Meanwhile, Umbrella would be integrated across multiple blockchain networks, including Ethereum Mainnet (Core & Prime instances), Avalanche, Sonic, Arbitrum, Gnosis, and the Coinbase-backed Base network.

LEND deprecation

The proposal also seeks to finalize the transition from LEND, Aave’s original governance token, before the 2020 upgrade to AAVE.

The plan involves freezing the LEND migration contract to reclaim 320,000 AAVE tokens valued at approximately $65 million.

The proposal noted that the community had ample time to complete the transition and suggested closing the migration process.

Following this, the DeFi protocol’s governance could decide how to allocate these recovered funds—whether for growth initiatives, security enhancements, or token burns.

Anti-GHO

Aave also proposes launching Anti-GHO, a new rewards mechanism designed to improve incentives for GHO stablecoin holders. This feature would replace the current discount model with a non-transferable ERC20 token.

Anti-GHO would be distributed to AAVE and StkBPT stakers. Holders could burn the token at a 1:1 ratio against GHO debt or convert it into StkGHO.

The issuance of Anti-GHO would be directly linked to revenue generated from GHO. A governance-determined percentage of revenue from GHO facilitators would be allocated toward minting and distributing Anti-GHO.

This approach ensures that incentives remain sustainable and scale proportionally with Aave’s growth.

However, implementing Anti-GHO may require additional development and auditing. The feature could be introduced in a future Aavenomics Part Two proposal.

The post Aave proposes major economic overhaul to enhance revenue and sustainability appeared first on CryptoSlate.

Check More Latest Cryptocurrency News Click Here– Latest Cryptocurrency News

Check More Business News Click Here– Latest Business News

Related Posts

Chainlink (LINK) Price Prediction 2025, 2026-2030 
Cryptocurrency

Chainlink (LINK) Price Prediction 2025, 2026-2030 

May 15, 2025
Analyst Who Called XRP Price Surge At alt=
Cryptocurrency

Analyst Who Called XRP Price Surge At $0.5 Says Surge To This Level Is Coming

May 15, 2025
Ukraine plans first-of-its-kind Bitcoin reserves with reported support from Binance
Cryptocurrency

Ukraine plans first-of-its-kind Bitcoin reserves with reported support from Binance

May 15, 2025
Aptos (APT) Price Forms Bullish Cup And Handle Pattern, Is A Breakout Toward  Next?
Cryptocurrency

Aptos (APT) Price Forms Bullish Cup And Handle Pattern, Is A Breakout Toward $10 Next?

May 15, 2025
Top 3 Crypto Price Forecasts: Bitcoin Breakout to 5K, XRP Pushes for
Cryptocurrency

Top 3 Crypto Price Forecasts: Bitcoin Breakout to $105K, XRP Pushes for $3

May 14, 2025
BC.GAME Unveils New Logo, Strengthens Crypto Integration in iGaming Ecosystem
Cryptocurrency

BC.GAME Unveils New Logo, Strengthens Crypto Integration in iGaming Ecosystem

May 14, 2025
XRP Sees Renewed Trader Activity as Market Absorbs Selling Pressure
Cryptocurrency

XRP Sees Renewed Trader Activity as Market Absorbs Selling Pressure

May 14, 2025
Twenty One Capital becomes top Bitcoin holder with 8.7M purchase ahead of public listing
Cryptocurrency

Twenty One Capital becomes top Bitcoin holder with $458.7M purchase ahead of public listing

May 14, 2025
Safe Online Casinos Australia 2025 – 10 Safest Aussie Casino Sites
Cryptocurrency

Safe Online Casinos Australia 2025 – 10 Safest Aussie Casino Sites

May 13, 2025
Bitcoin Set to Benefit from .5 Trillion Deficit Spike Under New U.S. Tax Proposal – Crypto News Flash
Cryptocurrency

Bitcoin Set to Benefit from $2.5 Trillion Deficit Spike Under New U.S. Tax Proposal – Crypto News Flash

May 13, 2025

We bring you the best Premium WordPress Themes that perfect for news, magazine, personal blog, etc.

Follow us on social media:

Recent News

  • The Eurovision final lineup is set as 6 more acts axed in a semifinal
  • Trump's stance against South Africa is not just about white farmers. It's also about Hamas and Iran
  • Design Thinking

Category

  • Brand Stories
  • Business
  • Cryptocurrency
  • Culture
  • Education
  • Entertainment
  • Environment
  • Health Trends
  • Latest News
  • Lifestyle
  • National
  • News
  • Opinion
  • Review
  • Science
  • Space
  • Sports
  • Technology
  • Travel
  • Uncategorized
  • World

Recent News

The Eurovision final lineup is set as 6 more acts axed in a semifinal

The Eurovision final lineup is set as 6 more acts axed in a semifinal

May 16, 2025
Trump's stance against South Africa is not just about white farmers. It's also about Hamas and Iran

Trump's stance against South Africa is not just about white farmers. It's also about Hamas and Iran

May 16, 2025
  • About
  • Advertise
  • Careers
  • Contact
  • Science
  • Environment
  • Education
  • Guest Post on News 4 Social

© 2025 News4Social - All Rights Reserved. Guild King Pvt. Ltd. News4Social.

No Result
View All Result
  • News
  • Business
  • National
  • Sports
  • Lifestyle
  • Travel
  • Opinion
  • Cryptocurrency
  • Entertainment

© 2025 News4Social - All Rights Reserved. Guild King Pvt. Ltd. News4Social.

Advertising