The discussion revolves around the concept of an Ignite Contract, a smart contract proposed by SamUchiha that acts as an on-chain investment arm of the AAVE token¹. The Ignite Contract leverages the reputation of the AAVE token to sell bonds and raise USD, which is then provided to other protocols via a governance proposal. The funds, along with the bond yield, are returned after a fixed period of time. The Ignite Contract also proposes a token burn function, requiring the fund-receiving protocol to burn a certain amount of AAVE tokens daily for a set period of time¹.

The philosophy behind the Ignite Contract is "Implicit Opportunity Cost Leveraging", a risk-free, expense-free method of lowering the implicit cost of a financial product, potentially making it perform better than it would on its own¹. SamUchiha also discusses the potential problems and concerns with not leveraging the AAVE token, such as missing out on opportunities in the fast-growing crypto ecosystem and the risks of centralized investment DAO solutions¹.

The Ignite Contract can have different versions, such as a bailout version for hacked protocols, a version that provides USD funds to DAO treasuries to fund projects, a version that provides liquidity to smaller cap protocols, and a Gamefi version that uses AAVE as collateral or currency¹. The Ignite Contract raises funds by using the AAVE token credit as collateral to sell bonds and raise USD with a 10% fixed APY. The 10% APY is generated by the funded protocol, and after a fixed period of time, the loan amount plus the 10% APY is returned¹.

SamUchiha proposed a token burning mechanism for AAVE tokens, which won't make any profit or loss but will be gradually burned by third-party protocols. The mechanism is either time-limited, with a preset daily burn amount, or amount-limited, using a percentage of fees generated from the protocol to buy and burn AAVE until a certain amount is burned in total¹.

The mission is to raise 200 million USD for 50+ protocols, aiming to burn 1,000,000 to 5,000,000 AAVE in the next 24 months or over time. The target protocols to implement the Ignite Contract include Beanstalk Protocol and other small cap big potential protocols¹.

The post ended with a potential offer for Aave DAO to raise 20 million USD by bond selling and lend it to Beanstalk DAO, which will use the funds to restart the protocol. Beanstalk DAO will have to return the funds with 10% APY after 12 months and start burning AAVE tokens¹.

SamUchiha is open to more new ideas and discussions and is continuously learning more about the Beanstalk protocol¹.