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Compound Interest Aave

2 replies, 1523 views, 9 likes

governance.aave.com

TL;DR:

The Aave community is considering the implementation of an automatic reinvestment feature, similar to the Celsius App, which would allow users to reinvest their staking rewards and capitalize on compound interest without paying Ethereum fees for each withdrawal. MarcZeller responded positively, suggesting it could be a good use case for a dapp built on Aave and proposed that the GrantDAO could initiate such a project.

The discussion primarily revolved around the potential implementation of an automatic reinvestment feature for Aave, as suggested by TheGhostLad. This feature, similar to one found in the Celsius App, would allow users to automatically reinvest their staking rewards, thereby circumventing the need to pay Ethereum fees for each withdrawal. The key advantage of this feature would be the ability to capitalize on compound interest. Importantly, TheGhostLad emphasized that this would be an optional feature, providing users with the flexibility to either withdraw or reinvest their earnings.

MarcZeller responded favorably to this proposal, suggesting that it could serve as an excellent use case for a decentralized application (dapp) built on top of Aave. He pointed to QiDao camtokens as an example of a project that already auto-compounds rewards in the collateral deposited on Aave. Furthermore, he proposed that the GrantDAO could potentially initiate such a project. This discussion underscores the community's ongoing efforts to enhance the functionality and user experience of Aave, with a particular focus on optimizing the benefits of staking rewards.

Posted 2 years ago

Last reply 2 years ago

Summary updated 2 months ago

Last updated 03/12 08:01