- Aave would implement a strategy to back GHO’s secondary liquidity.
- The volume on the Aave protocol dropped but development activity increased.
The Aave [AAVE] community has approved a proposal to position its Decentralized Autonomous Organization (DAO) as a major influence on the DeFi ecosystem while improving GHO’s liquidity.
The protocol had put forward the proposal, named the “aCRV OTC Deal” earlier in the month.
Realistic or not, here’s CRV’s market cap in AAVE terms
And according to the voting results 370,359 community members voted in favor of the proposal. On the other hand, 270.308, representing 42.19% of the voting populace thumbed print against it.
Time to “GHO” overboard
Details from the proposal showed that the leading DeFi platform plans to take a strategic step by acquiring Curve Finance [CRV] tokens using Tether [USDT] from its treasury.
And all these would be done in a bid to support the liquidity of GHO, its native decentralized stablecoin. In achieving this, Aave explained that,
“A 2M USDT worth of CRV acquisition would send a strong signal of DeFi supporting DeFi, while allowing the Aave DAO to strategically position itself in the Curve wars, benefiting GHO secondary liquidity.”
Recall that the recent Curve exploit affected the Aave protocol. And despite several attempts by Curve Finance’s founder to salvage the situation, Aave lost hold of its second place as per Total Value Locked (TVL).
Source: DefiLlama
The decline in TVL means that unique smart contract deposits into the eight chains operating under Curve had reduced. But at press time, DefiLlama showed that the TVL had gained a paltry 1.28% in the last 24 hours.
Volume falls, development rises
At the time of writing, Aave’s treasury was worth 112.99 million. However, the token’s volume was nowhere near impressive at $77.87 million.
The decrease in volume indicated that actual transactions on the Aave protocol dropped. Meanwhile, Aave also noted that the approved proposal, which would be implemented in a short while, would involve a CRV token contract transfer to the Aave collector protocol. Its statement read,
“In terms of implementation, this AIP initiates a transferFrom() on the aCRV token contract to the Aave Collector, leveraging a previous approval() from 0x7a16ff8270133f063aab6c9977183d9e72835428 of 5M aCRV tokens to the Aave DAO treasury (collector contract).”
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Additionally, Aave’s development activity had increased to 5.07. The development activity of a project tracks the public GitHub repositories committed on-chain.
Source: Santiment
An increase in the metric suggests improved dedication by developers to upgrades on the network. However, if the metric had decreased, it would mean that commit codes to Aave were not present.
