Aave Weekly: Protocol Performance & Governance Update

Thomas Jefferson said “Whenever the people are well-informed, they can be trusted with their own government”

$AAVE holders already govern Aave, this thread regroups the Aave Weekly Newsletters with insights on protocol liquidity and income as well as the top governance discussions

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Let’s follow up with this Henry Ford quote: It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.

Henry Ford

That day might be upon us.

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Just to be clear, the $23.3M is the current annualized fees/income to token holders, correct? Thanks for putting this together looks good.

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It’s the annualised income generated by the protocol going to depositors and liquidators.
In V2 the Reserve Factor directs a share of the interests to the ecosystem reserve to sustain the Aave DAO.
As an $AAVE holder you can secure the protocol by staking your tokens in the Safety Module compensated at a current 4.8% APY (financed by the ecosystem reserve). This exposes to slashing risk with up to 30% of the stake at risk in case of shortfall event.

Thanks for your reply.

Apologies for my ignorance. Trying to get up to speed here. I guess ill just rephrase the question as I look at the safety module architecture… :

It looks like the “fee collection” goes to the 1) safety module, the 2) backup module, and 3) oracles. Im just trying to understand the total “fee collection” and if it can be found in your presentation.

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Hi @Trident5000

Here is a breakdown of the income distribution :

  1. Interests go to depositors, in V2, a share is directed to the ecosystem reserve with the reserve factor. I have added it in the Aave Weekly 52 Analysis

  2. Flash Loan fees go to depositors

  3. Liquidation Bonus go to liquidators

Currently the Safety Module incentives are sustained by the ecosystem reserve initial funding

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Thx for the weekly report! Really neat.

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Thank you for the split between Depositors and Ecosystem collector !
It’s easier to follow :slight_smile:

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Aave Weekly 2021W5.pdf (3.1 MB)

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Thanks Alex, great work.

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Hello Alex and community, thanks for the great work. If I may bring this to your attention, Celsius wallet is now offering a better APY to stake my AAVE (7.5% versus 6.14%). May I propose that we increase the total emissions per day to match this? Otherwise, stakers will be incentivized to move their funds to Celsius. Let me know what you think. Thank you.

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