Aave Community Votes on Genesis Parameters for Aave V3 GHO

On April 30th, according to the snapshot page, the Aave community initiated an on chain vote on the “Aave V3 GHO Genesis Parameters” proposal, aimed at consolidating the community’s preference for the GHO starting parameters of V3 Ethereum promoters, which will expire on May 3rd. It is reported that the proposal provides two options for selection: Option A has a loan interest rate of 1.5%, a Bucket Capacity of $100 million, and a stkAAVE Discount Rate of 30%; Option B has a loan interest rate of 2%, a Bucket Capacity of $50 million, and a stkAAVE Discount Rate of 25%. Currently, Option A has a support rate of 83.63%, Option B has a support rate of 15.33%, and 1.05% is waived.

The Aave community initiated an on chain vote on the proposal related to “Aave V3 GHO Genesis Parameters”

As the Aave community grows, its governance protocol continues to evolve. On April 30th, the Aave community initiated an on-chain vote on the “Aave V3 GHO Genesis Parameters” proposal, aimed at consolidating the community’s preference for the GHO starting parameters of V3 Ethereum promoters, which will expire on May 3rd. Let’s take a closer look at the proposal, the options available, and the current state of the vote.

The Proposal

The Aave V3 GHO Genesis Parameters proposal provides two options for selection: Option A and Option B. Option A has a loan interest rate of 1.5%, a Bucket Capacity of $100 million, and a stkAAVE Discount Rate of 30%. Option B has a loan interest rate of 2%, a Bucket Capacity of $50 million, and a stkAAVE Discount Rate of 25%.

The Options

So why would the Aave community choose one option over the other? Option A seems to provide better terms for borrowers with a lower interest rate and a higher Bucket Capacity. In contrast, Option B offers a higher interest rate, but with a lower Bucket Capacity. It’s important to note that the stkAAVE Discount Rate is higher for Option A, making it a more attractive option for token holders who want to stake their AAVE.
At the time of writing, Option A has a support rate of 83.63%, Option B has a support rate of 15.33%, and 1.05% is waived.

Why the Vote Matters

This vote matters because it allows the Aave community to determine the starting parameters of V3 Ethereum promoters. The Aave platform’s success depends on the decisions made by its community, and this vote is one such decision that will affect the outcome. The outcome of the vote will determine the terms borrowers will receive when borrowing funds, and the discounts given to stakers for holding AAVE.

Conclusion

The Aave Community Vote on the “Aave V3 GHO Genesis Parameters” proposal is a critical decision that will affect how the Aave platform functions. While both options have their pros and cons, it’s important for the community to make its voice heard.

FAQs

1. What is Aave?
Aave is a decentralized finance protocol that allows users to lend and borrow cryptocurrencies without the need for intermediaries.
2. What is a GHO?
GHO stands for Gasless Hardhat Operator. It’s a new way to deploy smart contracts on Ethereum that allows developers to deploy and test without the need for Ether.
3. How does the Aave governance protocol work?
The Aave governance protocol allows Aave token holders to vote on proposed changes to the Aave platform. The more AAVE tokens you hold, the more voting power you have.