ARC : When profits sharing?

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governance.aave.com

TL;DR:

The discussion focused on the financial sustainability of the Aave protocol, with concerns raised about the depletion of the reserve ecosystem due to Liquidity Mining programs. Proposals included creating a minimum treasury of $50 million, issuing $35 million worth of NFT bonds, optimizing the use of Aave's assets, and launching Aave on Fantom to monitor treasury growth.

The discussion primarily revolved around the financial sustainability of the Aave protocol. EmmanuelD raised concerns about the depletion of the reserve ecosystem due to Liquidity Mining programs on Polygon, Ethereum, and Avax. He suggested a minimum treasury of $50 million for the protocol to be financially self-sufficient and proposed creating bonds worth at least $35 million to replenish the treasury. These bonds would be NFTs redeemable for the same amount plus a bonus payable in Aave by the reserve ecosystem. Eboado agreed with these concerns and suggested optimizing the use of Aave's assets, including the Aave treasury's aTokens, and claiming rewards on the Aave treasury. He proposed an Aave Improvement Proposal (AIP) to initiate these actions.

Fig mentioned the upcoming proposal to launch Aave on Fantom (FTM), which would provide another Ethereum Virtual Machine (EVM) chain to monitor treasury growth. EmmanuelD agreed with Eboado's suggestions and emphasized the need for yield-farming strategies to increase cash flow. He proposed a snapshot on the community's desire to complete the cash flow. State expressed interest in a proposal showing what a significant reduction in spending on the Liquidity Mining (LM) program could look like. Eboado asked EmmanuelD to elaborate on his proposed model involving a new type of liquidity providers supplying liquidity directly to the Aave treasury.

JeremyKeating agreed with the goal of ensuring the protocol's long-term solvency and viability and asked for clarification on the incentive for bond holders to purchase bonds. The discussion concluded with a consensus on the need to optimize the use of Aave's assets and the creation of bonds to ensure the protocol's financial sustainability.

Posted 2 years ago

Last reply 2 years ago

Summary updated 2 months ago

Last updated 08/12 04:39