Aave Multi-chain IDO Launchpad

Aave Grants DAO
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I’d like to propose Aave create it’s own Multi-chain IDO Launchpad.

The idea struck me the other night when I pondered the question:

"How do we increase utility for the Aave token?

So, how does the Aave Launchpad increase $AAVE token utility? By requiring investors hold a minimum amount of $AAVE (multi-chain - staked or not) to gain early access to IDOs.

With the legitimacy Aave brings to the defi world, the demand will be high for tokens to launch from the Aave Launchpad.

Imagine if this were launched alongside V3! :exploding_head:

Benefits:

  • Increased $AAVE token utility
  • Increased $AAVE token demand
  • Increased value brought to new & existing token holders
  • Building/strengthening multi-chain Aave community
  • Support early stage crypto projects (adding legitimacy with the Aave stamp of approval)
  • Educating community members about new & exciting projects within the crypto space
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Is no one interested in increasing the utility of the $AAVE token?

Or can you suggest another/better way to do so?

Can someone explain if the cons outweigh the pros of this launchpad idea?

“Coins which exist to serve existing holders as opposed to provide utility and value for users, both current and new, will be decimated in years to come” - Zhu Su

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Oh no. Hopefully Zhu Su won’t abandon AAVE…

He is talking about coins. In particular he is talking about his twisted view that Ethereum has less utility than AVAX. I doubt he realises that that statement only works with exactly his twisted view, as most other people will probably read it differently.

Anyway, apart from CT drama:

I have no idea how anyone could think that AAVE doesn’t have “enough” utility as a token.

AAVE is a governance token. I.e. you, with your AAVE control the governance of the protocol. This includes the way the protocol takes in the future, as well as control over its use of revenue and usage of the treasury. Through the AAVE Grants DAO you also control the usage of funds to further an AAVE ecosystem.

AAVE is also a security token, helping to secure the solvency of the protocol through staking and gaining rewards for exactly that. The rewards being more than competitive when it comes to staking tokens.

Now to your proposal:

Yes, no doubt. This would add another use case.

In my opinion - just barely. You might have times of increased demand when the IDO is live, which will decrease thereafter. The only way to increase a sustainable demand, in which user would need to hold on to their AAVE is if you introduce a Binance-style mechanism in which you need to have a certain holding over a certain period to be eligible or to increase you buying power, as you suggested. A mechanism I personally never liked. It wouldn’t pull the USERS into the AAVE ecosystem, it would pull speculators in.

New token holders have immediately the same value and utility as existing token holders. If that is what you’re playing at. Otherwise this point is exactly the same as your first one - “increased utility”.

Yeah, to a point I agree.

Support can be given in many ways. Adding legitimacy is a good point. But it’s also a point where AAVE needs to be very careful. There would need to be reviews, KYC, etc. in place for this. That is a lot of work. Think AAVE Grants DAO only bigger and with more checks. Because there is a lot of support to be lost if you support a malicious project.

Not sure an IDO platform is needed for that. Subscription at Bankless would do the trick.

All in all, I’m not a big fan of the idea. If you think about it, it actually hinders a lot of people in participating in the IDO. Be it because they might not have the funds lying around to stake huge amounts of AAVE or be it that you actually form an “exclusive club” with that mechanism. I can’t find any reason to levy those restrictions on anybody except one thing: pump the AAVE price.

If users don’t see the value of the AAVE token, I can’t help them. This, in my opinion, won’t help for them to see.

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Thanks for your time @neptune, some good points in there, much appreciated :pray:

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The risks and time/effort involved in getting the IDO platform up and running, along with maintaining a high level of safety in onboarding worthy projects, is the biggest risk factor I see & feel unsure about.

I don’t think there’s a way around the side-effect of pulling in speculators - the $AAVE liquidity mining program has shown that. After having removed his liquidity and dumping the AAVE protocol TVL a few weeks back, it makes me wonder how much governance power Justin Sun has accrued (still has…?) as a result.

AAVE token holders who cannot meet the minimum to participate in an IDO would still have access to all current utility options, but would they not also benefit indirectly with increased value (AAVE token appreciating in price) brought about by this restriction?

Or maybe even this minimum restriction could be navigated by granting all AAVE token holders IDO access, only restricting the amount in which they can participate?

Maybe stakers could get maximum benefits, which in turn would increase AAVE protocol security as well = stake (amount of) $AAVE to receive maximum benefits.

I’m a big fan/user of $ETH & $AVAX and as coins they both provide great utility (multi-chain is the future), as does $AAVE token - but if more utility can be added (without compromising safety or reputation), then maybe other means in doing so should be considered.

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Team is heads down building anything and everything from an NFT lending protocol to a social protocol and who knows what else. They have been innovators for a long time and probably have a clear vision and scope. No need to creep IMO, especially for something like IDO.

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@iDecentralized Yes, Aave team are doing a fantastic job and are giga-brain innovators in the space - I’m a huge supporter since the $LEND days and will continue to be a committed member of the AAVE family.

Even though the Aave dev team are indeed very busy with other things currently, and may have a clear scope and better understanding of technical protocol aspects than myself, I do feel the need sometimes to express an idea when the mood strikes, no matter how little weight it may carry. And this forum seems the perfect place to do so.

And who knows, the conversation may even spark another idea in the mind of a dev who can put something to work that is much more beneficial to the protocol :slight_smile:

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I completely agree that ideas in the open are always welcome and you never know, it might spur the next big thing!

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Isn’t that the guys that said ETH is going to die? :sweat_smile:

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Yeah, I’m not sure exactly what’s going on there with his overly dramatic exit on ETH - seems like a whole lot of CT drama :man_shrugging:

Aside from that, the words he used (regardless of context intended) reflected what I had been thinking about in that moment - that coins & tokens bring a lot of value to the table for new and existing users/holders when they continue to provide a lot of utility

1 Like