Aave Stake/Lending Locking With Higher Yield 12+ Month

I had been thinking about Aave creating a unique long term Aave staking option where it would yield a higher fixed interest rate/Yield but with a long term 12+ month locking away the principle; while the earned interest/yield can be used any time.

For instance if I have a house worth $1 million dollars I want to be able to take out a fixed mortgage on the property, let’s say 2.7% interest rate.

With Aave Long Term Stake/Lending at say 7%-9% I would able to use the earned interest rate to cover the mortgage while turning a steady profit in the long term.

This would be a greater alternative to burning the tokens as was explored recently. Because locking away the the Aave tokens would take more Aave tokens out of the market which will increase demand, all the while the higher interest rate mean more demand for Aave in the long term for investors.

This would also mean that new fresh cash would flow into the project for the long term, and create stability

The locked Aave’s can then be used for security of the network, and or to attract more cross chain use of Aave tokens directly for other DeFi partners etc

For instance we can introduce Collateral Managers.

The Collateral Managers are smart contracts that support value transfer activities that support lock, release, and redirect collateral in these partitions.(In case of Flexa/Amp)

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+1 to the proposal.

Aave has always had a long term vision and options available for long term lock up of Aave tokens resonates with long term objectives of decentralized markets and governance.

Rates towards the higher end of 9% will be favourable and attract larger volumes of lock up ensuring more security for protocol.

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I think that this proposal greatly strengthens the Aave protocol and increases the long-term value for Aave token holders in every way. This would also increase the incentive for investors from the institutional sector to opt for Aave.

1 Like