Besides BNT single sided LP’ing, LINK holders can also earn yield on CRV and even collateralize those positions on Rari. This would go a long way to keeping AAVE competitive both for fresh capital and existing users. Plenty of LINK still on the sidelines.
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Aaaand Compound has just approved adding LINK/cLINK. Tick tock, tick tock everyone.
So, we have DeFi protocols that the previous poster mentioned giving yield to LINK deposited (along with Bancor providing LINK rewards on L2 via Arbitrum shortly), and now Aave’s biggest lending competitor (in my opinion) is adding LINK.
Hear that sound?? That’s the giant sucking sound of LINK leaving Aave, unless Aave competes for LINK deposits very soon.
I know that I certainly will be looking elsewhere if no progress continues to be made on this proposal.
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I think adding LM incentives for LINK makes sense - it’s one of Aave’s largest collateral assets, and there’s significant amounts on v1 that have yet to migrate. But I think the amount of tokens offered should be less than for ETH / WBTC as LINK is arguably less liquid and offering too much incentives could increase risk for the market as a whole.
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Hi @monet-supply, thanks for your input here. I agree that the LM program for LINK would help migrate LINK still on v1 over to v2, but I think another benefit here is in further decentralizing the Aave DAO by rewarding a community that is highly synergistic with Aave and that has been a large supporter of the protocol since the launch of Aave v1 in early 2020 with the original Chainlink integration.
Outside of ETH and BTC (technically WBTC), LINK is one of the most liquid tokens on Ethereum with liquidity across most major CEXs and DEXs. I think the market risk is fairly low in that regard and is unlikely to be an issue if a large influx of LINK was deposited (LTV is set accordingly lower than ETH and equal to WBTC). Additionally, because the value of LINK is closely tied to the health of the Chainlink oracle network, which already secures the Aave protocol, there is no difference in outcome of a black swan event, unless the entire crypto market collapses, for which all collateral types would be effected. I think 200 stkAAVE to match the level of ETH and WBTC would make the most sense for those reasons, but open to discussion.
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Is there any further progress on this proposal?
I see someone has been working with Nomad Capitalist :)
It’s been more than a month so checking if there has been any news on this ?
Congratulations @ChainLinkGod, you must be pleased your proposal has gone live.
Chainlink and Aave are both amazing, it is so good to see them working together in Defi.
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