Revolutionize Aave: Revenue Redistribution & Safety Enhancements

Imagine you’re in a huge library, and you find a special book called Aave. This book is all about a cool system called decentralized finance, or DeFi for short. Now, this book is amazing, but it could be even better. So, the people who wrote it are planning a big update, which they call the Aavenomics update. Let’s check out what’s inside this exciting new chapter!

Aave wants to make sure its tokens and money work as well as possible. So, they’re planning to share more of the protocol’s extra money with people who help keep the system running. Right now, they have a thing called Merit, which gives $12 million every year to people who help keep the system safe. But with the new plan, they want to give even more rewards to people who help in other ways too!

In the world of DeFi, it’s important to keep everyone’s money safe. So, Aave is planning to add a new safety system called Umbrella. This system will protect people’s money if something goes wrong, like if the market has a big drop. With Umbrella, even big investors who worry about on-chain risks will feel safe using Aave[1]. Plus, Umbrella can help create new ways to make money, like by lending money to other systems!

To make all these big plans happen, Aave wants to create a special team called the Aave Finance Committee. This team will help manage the money, decide how much liquidity they need, and make sure Aave grows in the right way. They’ll work with other people to make sure everything runs smoothly[1]. With this team, Aave can react quickly to changes in the market without needing lots of votes from everyone.

Another big change is that Aave wants to close an old contract called LEND to AAVE migration. This will give them about $65 million worth of AAVE tokens to use for new projects[1]. Plus, they’re planning to buy AAVE tokens from other people and add them to their money reserve. They’ll start by buying $1 million worth of tokens every week for the first six months to make sure their token system stays healthy for a long time[1].

With all these big changes, Aave is getting ready for an even more amazing future. By making their tokens and money work better, keeping everyone safe, and having a smart team to help, Aave is ready to attract even more people and investors. The new Umbrella system and the Aave Finance Committee show that Aave is serious about making DeFi even better!

—