Aave Cowswap Integration- Tokenholder Questions

No, so Aave Labs integrated years ago paraswap adapters (that we mostly build as well, above in the thread for more info about that) into our own application, that we have build for the past 8 years and is our opinionated application.

The way paraswap was configured was that it was sometimes creating surplus of the swaps when execution is better than quotes and this surplus was donated to the Aave treasury. Its circa 200-250k per quarter. It could have been refunded or go to Aave Labs given its not a protocol related feature, its simply swaps on the Aave Labs application. We build it to improve the overall product and keep the users more engaged with the Aave Protocol to create more revenue for the Aave DAO.

Few months ago we wanted to improve the swapping experience on Aave and add MEV protections so we engaged with Coswap and we build ourselves together with the Coswap team new adapters and integration for the Aave application that didn’t require the use of paraswap anymore so this that was previously donated surplus decreased naturally.

For Aave Labs we do have an opinion that the Aave DAO should not fund the development of the Aave application that is owned by the Aave Labs team, instead it should fund protocol related development. This is also important especially because other service providers are looking to build products on top of the protocol that will generate more volume for the protocol.

That being said building a safe DeFi interface does come with a cost for Aave Labs and hopefully these swaps that don’t relate to the protocol and that help engage users to use Aave more on our application generate enough revenue that we can sustain the product development ourselves with our product awareness that we build over the past 8 years and ensure that users have a good experience to use Aave without the DAO needing to pay for it as this cost would be quite high.

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