DeFi’s favorite, LEND token increased by 5000% this year and is about to undergo a critical upgrade as we are reading more in the latest altcoin news.
Aave has become the flagship product in ETH’s defi ecosystem. In the money-market which is decentralized, users can borrow and lend crypto-assets such as stable coins and it has now more than $1 billion worth of value locked in smart contracts. According to DeFi pulse, it is the third-biggest ETH protocol by total locked value.
While it is DeFi’s favorite, LEND is not entirely decentralized. The governance of the protocol means that the direction in which it moves has been dictated by the organization behind the deployment of the protocol. Of course, users can say their opinions online if they wanted a change but there’s no formal governance structure to allow the retail users to participate. However, with the introduction of Aavenomics, this will change since the protocol’s native ETH-based token will be swapped for a new token named AAVE that will help govern the protocol.
The launch of $AAVE is officially in the hands of the community as AIP1 is now live 🎉
Buckle up! This is all happening in a matter of days.
— Spencer Noon (@spencernoon) September 25, 2020
It was just revealed that Aavenomics is being rolled out with it falling on the community whether the upgrade should be released no or later. According to an announcement by the Aave team:
“Aave Governance is officially on mainnet, giving the decisional power to the community!”
The first goal is to activate Aavenomics by making it the new governance token of the Aave Ecosystem. This way, users will have the opportunity to trade LEND for AAVE at 100:1 ratio giving the cryptocurrency a closer look at the price to that of other tokens in the Defi ecosystem. If the community agrees on AIP1, by outlining this migration, the new system called “safety mining” will be activated. The module will allow the users to earn AAVE as a Safety Incentive in exchange for a securing protocol. This will mark Aave’s entry into yield farming despite it was already the third-biggest defi protocol.
The vote was already falling in favor of the activation of the upgrade. 100% of the 55,000,000 votes are a “yes”, slowly reaching the 65 million quorum. LEND reacted well to the development as the coin increased by 10% over the past day, outperforming BTC. When Aavenomics was announced, the coin surged by 20 percent as the market saw this as a huge step forward for the DeFi coin.
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