AAVE protocol migrates from LEND to new governance token

AAVE protocol migrates from LEND to new governance token

Aave Token Migration (LEND to AAVE) & Staking Tutorial 👻

Contents

AAVE protocol migrates from LEND to new governance token
CONTENT

  • Aave platform hosts first community vote on token migration.

  • Every 100 LEND tokens will be converted into 1 AAVE.

  • It is not yet clear how migration will affect the LEND course.

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AAVE, one of the leading lending platforms in the DeFi segment, Decentralized Finance (DeFi) – this is financial services, built on blockchain technology, which offer users access to open, efficient and … More, preparing for the upcoming big migration from current LEND tokens to a new token As the use of cryptocurrencies increases, new types of tokens are emerging. They can represent value or something intangible like voices. Two … More AAVE controls.

The decision to migrate tokens is the result of the recent launch of a new project management system on the Aave mainnet. It will now be done through community voting. This innovation will take Aave one step closer to fully decentralizing the project, placing power in the hands of users and allowing them to determine the future of the protocol..

Great Migration of Tokens

Previously, such votes were held only on the test networks of the project, Kovan and Ropsten. Now members of the mainnet also got the opportunity to vote on various “Aave Improvement Proposals” (AIPs).

Aave Governance is officially on mainnet, giving the decisional power to the community! Now it’s time to vote on the very first Aave Improvement Proposal (AIP) for the token migration from $ LEND to $ AAVE.

Thread on how to vote

Blog post for details: https://t.co/Z09ajBmb2Y

– Aave (@AaveAave) September 25, 2020

The first such proposal was to ask users if they would like to switch from their current LEND tokens to a new token, AAVE. This migration will make AAVE the new management token for the entire ecosystem of the same name..

AAVE protocol migrates from LEND to new governance token

The five-day voting started on September 25th. The owners of LEND and aLEND tokens were invited to go to DApp Aave and vote on this proposal. Voting will end on October 1st, however, it looks like the migration idea has received community support.

This means that users will be able to migrate from LEND tokens to AAVE by exchanging them at a ratio of 100 LEND to 1 AAVE. Migration will automatically start after voting is complete and will proceed without a strict deadline.

AAVE protocol migrates from LEND to new governance token

In total, the project plans to issue 16 million tokens, of which 13 million will be given to the current owners of LEND. Another 3 million tokens will remain in the ecosystem reserve. AAVE holders will be able to deposit their coins in a “security module” (SM) and receive new tokens as a reward for participating in the protection of the protocol (a concept called “security mining”). Subsequently, if the community approves this decision, the project intends to add liquidity pools for AAVE / ETH.

Current situation according to LEND

In general, the Aave protocol continues to develop sustainably in accordance with the principles of tokenomics and the goals set out by the project team back in July. Recall that then the editorial staff of BeInCrypto already talked about Aave’s plans to switch to decentralized governance..

Many crypto investors are optimistic about the platform’s prospects.

LEND, about to become AAVE.

AAVE protocol migrates from LEND to new governance token

And it won’t take years. Several other quality DeFi assets also ready to fleet up on the market cap charts.

– DCinvestor | Aftab (@iamDCinvestor) September 30, 2020

Meanwhile, according to Coingecko, the current supply volume of LEND is 1.25 billion, and the market capitalization is about $ 663 million (32nd place in the capitalization rating).

At time of writing, LEND is trading in the $ 0.52 area, with an intraday decline of 8%. Based on the migration of tokens in a 100: 1 ratio, this could mean that potentially the cost of one AAVE coin could reach $ 50. However, of course, this cannot be guaranteed..

The all-time high for LEND was recorded at the end of August at $ 0.83. Since then, the token has dropped 37%. It remains only to see if migration and new opportunities for staking can significantly affect its course..

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