The DeFi provider Aave wants to continue writing its success story. This is now to be achieved through a new governance.
The DeFi lending protocol Aave has introduced its new governance framework. As the team announced on Friday last week, it is based on Ethereums mainnet. In its own words, the platform sees itself as a major step forward in terms of dencentralisation. This has always been an important feature of the corporate philosophy. Aave founder and CEO Stani Kulechov recently reaffirmed this in an interview with BTC-ECHO.
Until now, governance has been running in the test networks of Kovan and Ropsten. These allowed for a trial vote on Aave Improvement Proposals (AIPs) and to make suggestions for improvement. These AIPs enabled Aave to further develop its token. With the launch in the Ethereum Mainnet, users can now vote on the first official AIP focusing on a planned token migration.
This AIP1 contains the option to migrate from the LEND token to the AAVE token. This makes AIP1 also the new governance token in the platforms ecosystem. Holders of the LEND and aLEND tokens can use the DApp from Aave for their reconciliation. Prior to this offer, Aave has initiated a special referendum on the migration of the tokens. According to the protocol team, the voting period will last five days. If the proposal is accepted, the migration will be activated and users will be able to migrate from LEND to AAVE.
Aave owners can contribute to the security themselves
If the vote for the token migration fails, the owners can put their tokens into a security module (SM) after the migration and receive a bonus in exchange for securing the protocol as a security incentive (SI). Later, a percentage of the protocol fees can also be added as SI if the team agrees. The idea behind this safety mining is to reward community members who use their AAVE to promote the safety of the protocol.
The Aave protocol only went live at the beginning of the year. The extremely successful month of July brought in token sales with a volume of around 3 million US dollars. This has contributed to the fact that the platform now ranks at the top of the DeFi lending providers. However, the team also benefited from the approval of the British Financial Services Authority. Aave Ltd. was expressly granted the status of an e-money institution. It remains to be seen whether further applications to the regulatory authorities in the EU area will follow.
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