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Freshprana proposed increasing Total Emissions per day for AAVE staking to match Celsius wallet's APY, fearing stakers might move their funds to the insured, centralized Celsius. However, the consensus, including Freshprana's eventual agreement, was that AAVE's rates are market-driven and Celsius's insurance claims may not be as reliable as they seem.
The discussion was initiated by Freshprana, who proposed an increase in Total Emissions per day for AAVE staking to match the APY offered by Celsius wallet. The argument was that without this change, stakers might be incentivized to move their funds to Celsius, which despite being centralized, is insured and not subject to a 30% slash like AAVE1,3.
However, Haave and Pkcp expressed skepticism about the insurance claims of Celsius, suggesting that it might be more of a marketing strategy than a real guarantee of fund safety2,4,5. Aavenstein provided a different perspective, explaining that the rates are determined by demand and supply. They suggested that even if the daily emission was reduced, people would adjust their investments until the yield is worth the risk, which is currently around 6%6.
In conclusion, while there was a proposal to increase the Total Emissions per day for AAVE staking, the consensus seems to be that the current rates are determined by market forces and that the insurance claims of Celsius might not be as solid as they appear. Freshprana acknowledged this explanation7, indicating a resolution to the initial concern.
Posted 3 years ago
Last reply 3 years ago
Summary updated 2 months ago
Last updated 09/12 13:53