Aave, one of the oldest DeFi protocols, has reportedly experienced a massive increase in numbers all across the board – most notably their issued flash loans, which have purportedly ballooned by over 1,000% since the beginning of the month. In perspective, the $11 million they had back on July 1 has grown exponentially, now over $130 million this tail end of the month.
This historical loan issuance record for the DeFi protocol has propelled them to the fourth place in the sector’s most prominent protocols. Aave currently holds a $392.9 million capital value.
The excellent news for Aave does not end there, as their LEND tokens have also surged in market value by about 5-fold in less than a span of two months. As it currently stands, Aave sits in the 34th place of the most substantial digital assets via market cap ($362 million).
Aave’s plans to transition to distributed governance
The recent successes of the protocol have seemingly propelled them to the prospect of transitioning to decentralized governance, just like most do. Aave recently confirmed the “Aavenomics” proposal, which mirrors the steps of its fellow DeFi protocols that have successfully transitioned to decentralized governance already, such as Synthetix and Compound.
The Aavenomics pitch is slated to launch with a 100:1 exchange of the already present billion LEND tokens. This means that by the end of it, the current total 1.3 billion LEND tokens will be converted to 13 million AAVE governed tokens, with another 3 million kept for the so-called “Ecosystem Reserve” which is allocated as an incentive payment for the future as deemed by its very own community. This conversion is set to be facilitated via voting utilizing the LEND tokens through a particular Genesis Governance Poll. This is also a way to launch the needed smart contracts to transition to distributed governance officially.
Aave has now joined the ranks of several other DeFi protocols desiring to jump to the decentralized governance bandwagon. That being said, we cannot blame them for wanting to transition the power over cryptos from the facilitators to their user’s hands, as this has always been included in the demands of many users.