In Ethereum’s DeFi ecosystem, Aave became a flagship product at a fast pace. In this kind of market, people can trustlessly borrow and lend crypto-assets like stablecoins. According to DeFi Pulse, in terms of total locked value, it is the third-biggest Ethereum protocol.
The organization behind the deployment of the protocol has greatly influenced the governance of the protocol or the direction it moves in. On the other hand, users could express their side if they wanted something changes. However, there has been no formal governance structure that would let the retail users join.
But as “Aavenomics” enters, where LEND, the protocol’s native Ethereum-based token, will be changed for a new token called AAVE. It will help govern the protocol.
Aavenomics is being rolled out, bolstering atop Ethereum DeFi protocol
On September 25, the Aave team said Aave Governance is officially on mainnet. Furthermore, they said it gives more power to the community.
The first proposal is about making new governance token of the Aave Ecosystem. Thus, the user will be able to trade LEND for AAVE at a 100:1 ratio. This way, the price of the cryptocurrency will be closer to that of many other tokens in the DeFi ecosystem.
If the community would agree on AIP1, “Safety Mining” will be activated. As of now, the vote was in the favor of this upgrade.
So far, out of 55,000,000, 100% said “yes”, which makes 65 million quorum thresholds.
LEND reacts positively to the development
Because of the development, LEND has reacted positively. According to the market data, in the past 24 hours, the coin is up nearly 10 percent. It outperforms Bitcoin’s relatively mild one percent gain.
The coin soared in excess of 20 percent on the day Aavenomics was announced. Moreover, the market saw this as a strong step forward for the DeFi coin.
If by chance, LEND and AAVE would have further upside because of the activation of the Aavenomics, it would be barring a drop in the price of Bitcoin or Ethereum anyway.