Aave (AAVE)

Lots of discussions around Aave so I want to clarify a few things:

• First off, there is NO WAY we’d sell AAVE at a 70% discount lol.

• 100% of Aave Protocol and GHO revenue goes to the $AAVE token. This was established in the Aave Will Win proposal.

• AWW also applies to all product revenue, including the Aave App, Aave Pro, and Swaps.

• No protocol or product revenue goes to Aave Labs, which is a service provider to the DAO responsible for building and growing Aave.

• Aave Labs owns an allocation of AAVE that multiple market participants have discussed purchasing, directly or indirectly, through deeper long-term partnerships. The article’s framing is inaccurate.

• Aave is currently generating $134M in annualized revenue, which goes to the Aave DAO.

• As defined in AWW, all intellectual property, including the Aave brand and any software built for Aave, belongs to $AAVE.

• We haven’t shared much on this yet, but the Aave team is designing Aavenomics 3.0, which includes a new automated and non-discret

I’ve been looking more into Aavenomics 3.0, and imo this is one of the more important tokenomics updates in DeFi right now.

They are trying to make $AAVE less of a passive governance token and more of the asset that sits at the center of the protocol’s economics.

That matters because @aave already has the hard part working with things like real lending activity, GHO, institutional products, and now a bigger push toward RWAs and V4.

Aavenomics 3.0 takes that a step further by moving buybacks to become more automatic and built into the system, instead of being something a committee manually decides each time.

Also, Aave reportedly pushed back on a discounted 15% stake sale to @krakenfx at a $385M valuation, which IMO shows the team does not want Aave valued like some cheap DeFi asset.

Pretty cool, ngl.

Anyways, there is also V4, which pushes Aave toward tokenized stocks and securities lending, a market estimated around $4.6T.

So I think the bigger idea is pretty simple.

Buybacks can strengthen the $AAVE