Initial discussion: AAVE reserve emission for safety and ecosystem incentives

I think at this point we all await to vote on the migration and sequential deployment of the staking mechanism. What is needed is the clear avenue/platform where users can signal the intent, which I believe to be overwhelmingly positive. I personally agree with the proposed AAVE emission to bootstrap some liquidity into the safety module. As for the slashing stage, a proposal with several options would be the most simple for stakeholders to vote on - with options varying from Higher rewards for stakers/Lower for LPs to Higher for LPs/ Lower for stakers. Ultimately the initial options must rely on the team’s judgement given the inputs so far and various economic factors that I assume you model internally. Looking forward to the migration and the deployment of the Safety Module and V2 as a whole, whether at once or incrementally.


@depressedape on the polling, the Aave team can set it up in the next days for getting the sentiment before creating the AIP1.

Having options later on the slashing part in the polling would serve well the community sentiment.

On the team’s judgement, I think the community does not need to rely too much on the team, rather the team can poll a sentiment that the community endorses the most. I would imagine others will model as well the incentives in the future when Slashing and Balancer AMM is activated.


How I can vote ??? I spend couple hours and not found

The vote was concluded on Wednesday. Today in less than 12 hours the migration to AAVE will be activated.

How I can vote now ??

they just answered your question above, I think you had 5 days to vote. and now you are too late. that’s no problem follow Aave’s telegram group. for fast info about AIP.

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I’m found the anons yesterday morning and spend all day how voting but well I hope we in touch

I 100% agree with these factors for determining how to structure the incentives. I recently joined the forum this week and have been trying to absorb the previous discussions. I was planning to write a proposal to begin/consolidate the conversation about shared revenue with Aave stakers in one place but did not want to create a repeat thread. Have there been discussions yet for how we strike that balance other than this thread?

685 per day staking reward is rather low, if 40% of staking rate (about 5.2m of 13m total AAVE), the APY would be 4.81%, for 20% of staking rate, less than 10% APY. Comparing with aother governamnce coin in the DeFi space, such as Kyber, Band, Syntherix, Chainlink (, this is at the lower end. I suggest 1000 per day for staker and 1000 per day for LP, this will translate into about 7% with 40% of stake rate and 14% for 20% stake rate. Appeciate we are in this for long term, but 6 years (3M at 16.6% per year) is awlfully long time in a fast moving DeFi space. AAVE needs to scale quickly within a year or two before competitiors catching up, its incentive program needs to gear up for rapid scaling.


Hey Jeffrey, for now incentives are only 400 per day because slashing is not activated, once we’ll protect the protocol, there will be more Aave available for staking and LP.

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Thanks for this info. Is there a timeline somewhere on when slashing would become activated?

As a staker, I think this is a great idea. I was also hoping that some of the risk of up to 30% from slashing could somehow be mitigated.

Result of token manipulation. Even with coinbase listing price moves down. Bancor crossed 1.5$ mark AAVE wud have been higher then that if we had 1.3 Billion tokens.

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