Thank you for the feedback @EzR3aL @MarcZeller We at Puffer recognize Aave as a robust and proven lending protocol, particularly of its performance during recent and past market fluctuations.
Commitment to Aave: We are dedicated to making AAVE the centerpiece for lending within the pufETH ecosystem. To underline our commitment, we have allocated up to 10% of our airdrop specifically to support this initiative (this can be further improved with the support of our community)
Incentives for Users: Our current campaigns are offering high APRs, which we plan to further enhance by combining rewards in both PUFFER and CARROT tokens. This approach is designed to attract more users and liquidity to Aave.
Technical Advantages:
- Instant Withdrawal Capability: Puffer is uniquely equipped with a mechanism that allows for instant withdrawal with a nominal slippage of approximately 1%. This is a key feature that supports liquidity.
- High Liquidity Availability: We currently maintain about 17k ETH (25% of our pool) readily available for instant withdrawals. This liquidity assurance is critical for managing volatility.
- Partnership with Risk Analysts: We are open to and look forward to discussions with risk management experts like @LlamaRisk and others to further validate our liquidity mechanisms.
Addressing Liquidation Challenges: Our technical design is specifically tailored to mitigate the liquidation risks associated with LSTs and LRTs, enhancing the overall safety and efficiency of the AAVE ecosystem.
We believe these measures will significantly benefit both AAVE and our users, creating a resilient lending experience.