Posted 11 months ago | by Ben Armstrong
Aave’s Growing Thanks to the DeFi Revolution
Just a few years ago, most decentralized financial protocols (DeFi) and their tokens were unknown.
In fact, very few top crypto assets actually represent this financial revolution. Potential gains made DeFi become the big story of 2020 the crypto market. The recent success of Aave (LEND) is clear proof of DeFi's popularity.
The rising star Aave was granted by the Electronic Money Institution of the United Kingdom Financial Conduct Authority. This event marked a strong rebound since its launch of Aavenomics proposal, and quashed the rumors that the project was on the decline.
Speaking with media, Aave CEO Stani Kulechov, said that the ability to stake into the Safety Model will encourage additional institutional investors to invest in Aave.
Aave is an Ambitions Platform
Aavenomics' objective is to build a core where development, sustainability, and protection of the protocol take precedence over the objectives of individual stakeholders.
According to Kulechov,
“One of the AAVE token functions allows holders to stake into a Safety Model and provide safety for those depositors.”
The Safety Model is a staking system for securing AAVE tokens as a safeguard. O Financial rewards are aimed at those who take the most risk roles, the CEO says.
The project will move the original LEND token to AAVE to make Aave protocol regulation even more decentralized.
It will be kept at a fixed rate of 100 LEND per AAVE for Genesis Governance vote. Approval or rejection of the governance towards the proposed rate is expected to come the next few weeks.
More Coming From the Company Soon!
AAVE will have a capacity of 16 million tokens. LEND will redeem 13 million AAVE tokens.
This means that the LEND supply is higher when compared to the Aave token. A technical upgrade is the explanation for this, as Kulechov reported . A new "protocol security" mint AAVE feature is being introduced.
“If there is a smart contract bug, or there is a failed liquidation or some sort of an event that there is a deficit into the protocol, minting more AAVE is said to save protocol deficit.”
A reserve of 3 million Aave tokens has been pushed off for later developers’ purposes.
“If someone is building some interesting functionality for the protocol, this reserve can be utilized to support those kinds of actions,” he added.
Protocol compatibility in the DeFi ecosystem of Ethereum is essential and practical to the current market assessment of DeFi.
Kulechov pointed out,
“The key factor for the substantial growth in the DeFi space depends on an infrastructure where developers can use one or two baseline protocols and build other protocols on top of them.”
He also stated that developers and users are those building and maintaining the project while DeFi offers the playgrounds.
Kulechov noted that DeFi’s true mission is to eradicate the inefficiency of conventional funding and provide an unregulated facility that enables individuals to access the financial system without obstacles.
It is estimated that approximately 30 unique access points are accessible for Aave protocol users.
The network without authorization plays a crucial role in pushing cryptocurrency to mass adoption, and is also a place where everyone can develop DeFi functions.
“Any developer from different parts of the globe can build a new financial or non financial application that uses Aave anywhere and anytime because our protocol is accessible to developers and that’s an important factor for adoption.”
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