Crypto lending platform Aave is considering enabling a “fee switch” proposal to distribute transaction fees to platform owners. Marc Zeller, founder of Aave Chan Initiative, stated that the current net profit of Aave DAO on social media platform X is approximately $60 million annually.
Steps for Aave Users
Aave is a platform that conducts borrowing transactions across multiple blockchains and is managed by AaveDAO. Zeller has provided hints about potential fee applications for Aave users and published an update on March 16 on this topic.
Developments in the Platform’s Fee Policies
The “fee switch” feature is an administrative tool that enables the activation or deactivation of fees within the platform. AaveDAO approved changes in GHO staking fees and was inspired by the fee switch proposal of Frax Finance. AaveDAO also opened discussions on Dai collateral constraints and LTV ratios.
Useful Information for Readers
Aave can enable a “fee switch” for distributing fees to owners.
AaveDAO has the authority to approve significant decisions, such as GHO staking fees.
Proposals have been made regarding Dai (DAI) collateral and loan-to-value (LTV) ratios of the platform.
Finally, there is a new proposal for DAI LTV ratios in Aave and preparations for Uniswap’s own fee change proposal.
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