love the spirit of this proposal @axieaur
In terms of yield, it offers an opportunity on the old version of the safety module with little yield and high risk and no borrowing capacity.
I believe AAVE could be strengthened from both a utility and income perspective. Introducing a mechanism to distribute dividends from the Aave Protocol through StkAAVE staking, offering a relatively high yet sustainable yield, would enhance the token’s appeal as a source of cash income and improve its fundamental value. This is something that is sensitive to protocol revenue and more of long term vision until extremely high market share is reached.
Additionally, enabling StkAAVE to be used as collateral would significantly expand its utility and should be a key next step.
The buyback program is also a strong model, and Marc’s recent update to expand it is a positive move, especially given that AAVE appears undervalued at present.
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Sounds like a good plan to me, hope we can see a proposal very soon.
The significant growth of AAVE has brought corresponding benefits to Aave Labs and other partners. It’s time to consider the interests of AAVE investors. Stani’s suggestion is excellent. By allowing AAVE’s stakers to share the income of the AAVE protocol, AAVE has been transformed into stocks, which will bring about significant value to the AAVE tokens. I support Stani’s idea.
As an investor who has held AAVE for over 8 years, I have witnessed AAVE grow. However, the price of AAVE tokens seems to have remained stagnant. I hope everyone will pay more attention to the token economics of AAVE and consider it for long-term investors.
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Hello,
I agree that the AAVE token should be more useful.
We need to redistribute “dividends” to stkAAVE in addition to having stkAAVE as collateral/a reduction in the borrowing rate on $GHO.
@TokenLogic could estimate the number of stablecoin borrowed against aAAVE tokens as collateral. If a majority of the stablecoins borrowed by aAAVE are swapped into $GHO debt, this is beneficial for everyone. Aave earns more dollars from the 100% factor reserve, the $GHO supply increases, and borrowers pay less for the borrowing rate.
It’s a virtuous circle; the risks must be analyzed, but we must restore power and importance to the AAVE token, with an economic benefit for both the user and the AAVE protocol.
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The question is, who is going to execute this? For example talking about stkaave and borrow power. Is Aave Labs working on this?
1 Like