LEND will migrate to AAVE, via a Genesis Governance vote, at a rate of 100 LEND per 1 AAVE.
The total supply of AAVE will be 16M tokens.
13M AAVE tokens will be redeemed by LEND token holders.
3M AAVE tokens will be allocated to the Aave Ecosystem Reserve.
The Aavenomics is a formalized path to the decentralization and autonomy of the Aave Protocol.
Acting as a catalyst for growth, Aavenomics introduces a future-proof framework leveraging financial incentives and multilevel governance to prioritize the safety and sustainability of Aave.
Formal documentation detailing the specific inner workings of the topics covered in this paper can be found in the Aavenomics paper.Aavenomics
Aavenomics are fueled by governance forums and ratified through onchain Aave Improvement Proposals (AIPs) using AAVE. This process looks to ensure extensive discussion is had on proposals prior to being pushed onchain. Both AAVE held in cold storage and AAVE staked via the Safety Module can be used to vote on AIPs or be delegated to Aave protocol politicians to vote on your behalf.
The community creates an AIP
The community evaluates the AIP, feedback is collected, AIP is polished
The community signals to implement the proposal
The genesis team implements the proposal, and submits it to the governance
The governance evaluates the implementation and approves or rejects the proposal
Protocol Policies govern the overall behavior of Aave including risks, improvements and incentives.
Market Policies define the context of each market within the Aave protocol, including supported assets, LTV ratios, and interest rate models.
Shifting Power DynamicsShifting Power Dynamics
Aavenomics reward those bearing the most risk with the highest incentives. Aavenomics describes the process in which AAVE stakers bear any deficits along with detailed examples and explanations of protocol policies and governance interactions.
Want to participate?
We invite those eager to participate in the discussion surrounding any of the above concepts to join our governance forum or Discord as it’s readers such as yourself which will shape the Aave protocol of tomorrow.