Indeed, developments on the decentralized finance (DeFi) protocol AAVE seem an unending activity. The community decided to launch the platform’s stablecoin GHO in July. Meanwhile, AAVE still has something new.
The AAVE fans have proposed the network’s governance and voting community authorize AAVE V3’s retroactive funding. Now, what does this project want to achieve? Furthermore, what does the whole thing mean for AAVE?
Deciphering
The request suggests the funding would strengthen the Aave blockchain and ensure essential functionalities for the AAVE V3. Meanwhile, DeFiLlama data indicated that the platform’s V3 had performed well lately.
Considering the information, AAVE V3 contributed around $1.67B to the total AAVE’s TVL (total value locked). That supply bolstered the Aave network to maintain its 3rd spot, its TVL at $7.142 billion. Housing seven chains, the latest AAVE activities might have it taking Lido Finance’s (LDO) 2nd position.
While publishing this content, AAVE has had a 5.20% TVL surge within the past 24 hours. What more from the funding proposal?
Aave requested that its DAO (Decentralized Autonomous Organization) authorize $1.6 million and $15 million for audit and work ‘incurred’ to enhance the development. The proposal highlighted that the V3 success & advancement remains essential for other versions comprehensive.
The protocol’s leading factors have been high efficiency, L2 network improvement, and isolation modes. The proposal suggests that integrating these functionalities will ensure smooth use of various networks within the protocol system.
Aave stated that V3 enjoyed demand for steady eMode (Efficiency Mode), and new asset listings capitalized on AAVE V3’s capital competence. It added risk management functionalities like isolation mode proved prescient amidst the latest substantial crypto market events.
On the DeFi front, Aave trusts that V3 advancements and retroactive funding will lead to heightened innovation. While publishing this post, the community had presented some reactions, with many individuals showing optimism about the proposals, and live funding signals appeared visible.
Meanwhile, the proposal triggered uptrends in AAVE, recording a 10.31% uptick from the previous day’s low. Also, the improved mood saw an enormous 137.98% surge within the past 24hrs.