Usecase proposal : Make Aave even greater

Hi, I would like to give some input into Aave as we are now able to do some by ourselves!

My suggestion is to add more value to Aave.

Why do we need value for Aave?
Right now Aave is having a solid system, there are plenty people using the Dapp and it is safe. No hacks, no critical bugs. But what about the token itself? What usecase does is have? Right now the only use case is to stake, provide liquidity and farm a little bit and take part in AIP.
This means, if you aren’t really interested in these topics you are just a hodler or trader. But what are the benefits then for you? Not that much.

My proposal is to add value to hodler or trader and even user of Aave market.

How could this look like?
Well, in my opinion the Aave token should be used for lower fees. A good example for this would be ybitpanda with the token Best. With Best you are able to save fees within their whole ecosystem. So adapted on Aave this would mean, if you want to take a loan your fees will be x%, but if you hold or use Aave your fees will be deducted by x%.
There could be 2 possible scenarios, either you have to hodl them and reach a special level. E.g. For Aave Level 1 you will need 50 Aave and your fees will be reduced by x%. Or the other way could be that, whenever you want to take a loan or borrow or whatever, you can use Aave to reduce your fees and these Aave will be collected and monthly distributed to hodler that are having a special amount of Aave. For example you must hodl at least 20 Aave to be egliable.

And this example could be used in every market to benefit from using the token. Either if you are just a hodler or active platform user or even both.

The next usecase for Aave could be that if you are providing liquidity in Dai and also add some Aave ( like in a uniswap pool) then you will be higher rewarded. In this case a level system could be possible again.

Please feel free to comment and tell me if I got something wrong or if you do even have better ideas!
Because we are know the ones who need to buidl!

Help me and Aave to make it even aavesomer
Thank you


this seems like a good idea after the price settles a bit. and when the migration is fully done?

This has nothing to do with the current market situation. So this is nothing that has to be added in terms of price but in terms of progress and usecase.
Ans what do you mean with your question? The migration will be done when it’s done. There is no time frame at the moment. There could be a proposal to add some deadline. But right now I don’t see any need for this.

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Indeed, the token needs a utility, the current minimal staking rewards do not justify the “slashing” risk. The protocol should implement buying pressure with some sort of tx fee.


aave - governance to vote
governance – ownership
ownership – dividends
dividends – Aave as payment from all the fees based on lending.

otherwise the token is pointless imo.

This is where we need to be. If Aave can stay top of the lending game and adopted as the premier crypto lender, or one of, there will be real incentive to own Aave.

Even a discount fee structure for using Aave platform with Aave but accept eth also. Though obviously more benefits for using Aave etc to ensure it’s the preferred fee etc

In my mind we cant have a situation where I can visit, borrow or lend and never once need to know (use) what the aave token is. This is crazy. Aave has zero value.
We minted more aave just to pay stakers - crazy. It’s like a company paid for shares and then pays the shareholders again.
The fact that you can interact with the protcol and never need to hold a single aave is what worries me the most now. We basically have a nothingburger token…


What fees are generated from the protocol and what happens to them?

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I would just propose a migration deadline. Because 1. Lend token should not be traded anymore so it may be possible to burn all the rest?. 2. it would finalize a real supply cause all tokens which are not migrated, reduce the supply of the aave token. Eg if 80% of the lend tokens migrated to aave til a deadline, we have a reduced supply of 2,8 million tokens :) the fewer tokens, the higher the price expectations :slight_smile:

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I think that’s not a clever thought. A deadline is not needed at the moment. As Binance migration is pending, Swissborg and so on. So these token have to be considered into the migration. Probably after Binance swap we will reach 70%. And now wait for all the other exchanges. And to think, that the price will go up, just because of low supply isn’t clever either. You can have 500 token in circulation but when there is no demand the price will not rise. And it shouldn’t be about the price here, but about the ecosystem and how to fuel it with Aave.

Hmm. I have not spoken about any excact date, but i would prefer a deadline. Lend tokens are not needed anymore. And the price excpectation is of course a major key to success and incentive to buy!

Yes exactly open ended migration is stupid. We need to set a date and give notice .Get all exchanges to migrate and Aave.

I would suggest two models to be implemented

1)A burning model, capped to 3M Aave tokens.
2) An amount of the collected fees by Aave platform , would be distributed on a monthly basis, among all Aave Stacked holders. This would give Aave holders and extra incentive. And the other amount of the collected fees would be used to buyback Aave tokens and burn them as it is nowadays implemented.

although i liked the burn idea, at the moment, burning has this nasty gas fee problem. maybe it may shine within a layer 2 solution.
i think that we can much more easily reduce the supply with a deadline for migration. and it costs nothing. we have to give the people for sure some weeks, but to bring things in place, we should think about it.
to be honest i dont know if it is possilbe to burn the not migrated tokens in a centralized manner? probably someone knows?

But why is everybody so greedy for a low supply? We already have a low supply with Aave now. Lend had 1,3bn. So what’s the point of it? BTC has 21m, Aave 16m. And now? That’s pointless, sorry.

this has nothing to do with greedy. sorry, but we had no reduction of the supply but a increase…

  • 1.3billion /100 = 13million
  • 16 Million actual supply - 13 million previous supply = 3 million increase ( calculation in Lend would require x100 = 300 million supply increase

the supply an important perspective that matters in terms of price…

See that’s the thing. You are only talking about the price. The project is not interesting at all for you. Simple money greed. I wanted to have a discussion on how to make Aave more useful not on how to make me rich in 50 days.

And even now with this supply there are plenty token having a similar supply but higher price, so what’s the deal?

Chainlink has 350m token and was close to 20$.
I don’t get this, we need lower supply stuff.

Get YFV if you want a low supply token. If aave reaches the same price and you would need it to execute something on the dapp. Who do you think would use it? Probably nobody as it would be to expensive to buy one. Think more mainstream. That’s what is needed. A mass of customer not 3 that are rich enough.

Hohoho… I am lend token hodler since 01/2018, so i would probably call myself long time hodler. and the project is very interesting for me. please keep that in mind. no quick scheme to get rich fast guy.

dont get me wrong, i am also interested in a fee structured protocol where the aave token MUST be used to use the protocol. the question is, how to structure the fees.
i am not sure, but will aave stakers be able to borrow assets to a certain amount?
we have to take many variables into account.

supply is another incentive and perspective. thats the thing. deadline in the migration process could have 2 effects. 1. it will lead to a faster adoption of the aave token support.
2. lower the supply
and both aspects seem bullish for me.

The main issue for me is the zero need for the Aave token. Like I keep saying, staking is bullshit, pure and simple and still gives no utility to the Aave token.
All borrowing and lending should be subject to fees paid in Aave that way users of the protocol will always need to buy Aave thus creating a real use for the token.
How else is Aave to make money? How much fees are generated by the Aave protocol currently and what happens to those fees?


Charging fees in AAVE (even in backend) for all interactions with the protocol will be great to enhance and strengthen the ecosystem. Perhaps the advantages and disadvantages can be debated here.

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I think you need to read another time the aavenomics.
The token Aave is a governance token and it is use to “insure” the deposits of the users.
That’s not useless.
For the fees, discussions are in progress and we will see together what are the best views for users and aave holders.
You can check aavewatch to see how much fees are generated and data of all kind.