Marc Zeller, Aave Chan’s founder, has dropped hints about the possibility of a vote for the activation of a ‘fee switch’ on the DeFi (Decentralized Finance) platform. However, Zeller’s tweet on X threaded some of the DAO’s beliefs on how the Aave of about $60 million in annual net profits would be re-distributed to the owners. This is done in the context of a broader discussion on how to reward the ecosystem with participation and investment.
The last few governance votes by the Aave DAO have been in support of the introduction of some changes in the staking fee structure of the Aave stablecoins, GHO. Moreover, the aim is to prevent the stablecoin from fluctuating in value by keeping it stable. Zeller’s announcement shows the roadmap’s intention to compete with the Frax Finance and Uniswap DeFi protocols by advancing the staker rewards, a new adoption of the fee distribution approach.
Aave Proposes Safety Fund for Staker Income
Aave stakeholders have implemented accomplishments on a daily basis. Zeller already verified this in his tweet in March, introducing the concept of a safety fund, where the income would be disbursed to the stakers. Not only that, such a proposal is in line with the protocol’s aim to enhance its appeal for staking and make it more lucrative for the stakeholder.
As per Zeller, this move aims to make the network secure and stable through an improved stakeholder community. Challenging to realize, Frax Finance and Uniswap are currently to some extent implementing their fee switches. The fact that most DeFi protocols also focus on the needs of the users proves this shift towards generously compensating the users and strengthening the security around these platforms. However, a resolution to distribute fees to users could be the subsequent step for the platform, and holding place with the protocols that currently have such a model.
Skywards Proposes sUSDe Integration into V3
The DeFi entity Skywards has put forward a proposal to adopt sUSDe, the synthetic dollar, into Aave V3 on Ethereum, which is an ongoing project. On the other hand, the project is in TEMP CHECK stage and is aimed at the Aave protocol upgrade with new assets that provide stable and yield-earning features. The merger implies that the company is moving towards the direction of widening its services, and the risk management is achieved by cooperating with the companies such as Chaos Labs.
Thus, Skywards participation in Aave governance demonstrates the community-centric approach and decision-making process within the protocol. The proposal of sUSDe is not only a new asset for the ecosystem but also a sign of Aave’s dedication to the enhancement of its platform via open collaboration and transparency. This approach guarantees that the platform will remain up-to-date and ready to respond to the needs of Aave users and stakeholders.
