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LC_Liberty proposed a long-term staking option for Aave with a higher fixed interest rate and a 12+ month lock-in period, which was well-received by the community. The proposal aims to increase Aave's market demand, enhance network security, encourage cross-chain use, and attract more institutional investors.
The discussion revolved around a proposal put forth by LC_Liberty, suggesting Aave to introduce a unique long-term staking option with a higher fixed interest rate and a 12+ month lock-in period for the principal amount1. The interest earned could be accessed at any time, providing an alternative to burning tokens. This approach would effectively remove more Aave tokens from the market, potentially increasing demand and attracting more investment. The locked Aave tokens could be utilized for network security or to encourage cross-chain use of Aave tokens. The proposal also introduced the concept of Collateral Managers, smart contracts that facilitate value transfer activities.
The proposal was met with support from other community members. A_J agreed, stating that the proposal aligns with Aave's long-term vision and objectives of decentralized markets and governance2. They suggested that higher rates, around 9%, would attract larger volumes of lock-up, thereby ensuring more security for the protocol. Pearly56 also concurred with the proposal, believing it would strengthen the Aave protocol and increase the long-term value for Aave token holders3. They further suggested that it would also increase the incentive for institutional investors to opt for Aave.
In conclusion, the proposal for a long-term staking option with higher fixed interest rates was well-received, with community members believing it would strengthen the Aave protocol, increase the long-term value for token holders, and attract more institutional investors. The discussion indicates a positive outlook towards the implementation of this proposal.
Posted 2 years ago
Last reply 2 years ago
Summary updated 2 months ago
Last updated 09/12 13:53