Summary
TLDR: Aave is considering activating a fee switch to incentivize participation and investment, with the platform’s DAO currently earning $60 million annually. This move could redistribute transaction fees to Aave holders and stakers. The price of AAVE rose 4% following the announcement. Other DeFi protocols like Frax Finance and Uniswap have also adopted fee switches. Aave is also considering proposals to adjust exposure to DAI after MakerDAO’s announcement.
Key Points
1. Aave is considering activating a “fee switch” to incentivize participation and investment within its ecosystem, with the platform’s DAO currently earning $60 million annually in net profits.
2. The fee switch would allow Aave to toggle specific user fees on or off, potentially redistributing transaction-generated fees to platform participants such as Aave holders and stakers.
3. Aave’s proposed fee switch has already led to a 4% increase in the price of AAVE, with the platform being the largest lending protocol in the industry with over $11 billion worth of digital assets locked on it.