- Aave’s LEND token has rallied by 23% in the past 24 hours and is trading at $0.3440 at press time, according to data source Messari. It's the day's top performer among cryptocurrencies with at least $100 million market capitalization.
- On Wednesday, the protocol announced the Aavenomics Proposal, a plan to transition to decentralized governance by token holders, featuring a liquidity-mining rewards system similar to the one that helped drive growth recently in Compound, a rival decentralized lender.
- “The price rally suggests the protocol’s upcoming swap and revamped tokenomics has started to gain steam,” Su Zhu, CEO of the cryptocurrency-focused investment fund Three Arrows Capital, told CoinDesk in a Telegram chat. Three Arrows holds the LEND tokens.
- The new model will convert the existing 1.3 billion LEND to AAVE governance tokens in 100:1 ratio, effectively a reverse split.
- AAVE holders will be able to stake their tokens in return for new tokens and a percentage of protocol fees.
- “The market seems to have approved our proposal,” Marc Zeller, integration lead at Aave, told CoinDesk in a Twitter chat. “New actors are preparing to participate in the governance proposal and in the upcoming safety module.”
- LEND has jumped 18-fold in 2010, the most among large- and mid-cap cryptocurrencies, according to Messari.
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.