AaveToken (AAVE) טוקנומיקה

Aave’s token economics are designed to facilitate decentralized governance, secure the protocol against insolvency, and incentivize various stakeholders within its lending and borrowing ecosystem. The native token, AAVE, serves as the primary utility and governance asset.

Issuance Mechanism

The AAVE token has a maximum supply of 16,000,000 tokens. The protocol originally launched as "ETHLend" with the LEND token in September 2017. In September 2020, the protocol migrated to the AAVE token.

The issuance was primarily handled through a migration process where LEND holders could exchange their tokens for AAVE at a 100:1 ratio (100 LEND = 1 AAVE). This migration effectively reduced the total supply from 1.3 billion LEND to 13 million AAVE for the community, with an additional 3 million AAVE minted for the protocol's reserves.

Allocation Mechanism

The initial allocation of the 16 million AAVE tokens was divided between the existing community and a strategic reserve for future growth:

The Aave Ecosystem Reserve is controlled by AAVE tokenholders and stakers via on-chain governance. These funds are earmarked for incentivizing liquidity providers, software developers, and protocol integrators.

Usage and Incentive Mechanism

AAVE tokens have several core functions within the protocol:

• Governance: AAVE and staked AAVE (stkAAVE) holders can propose and vote on Aave Improvement Proposals (AIPs). These proposals can impact risk parameters, asset listings, and the allocation of treasury funds. A minimum of 1,600 AAVE in voting power is required to create a proposal on Snapshot.
• Collateral: AAVE can be used as collateral to borrow other assets across various supported networks (Ethereum, Polygon, Avalanche, Arbitrum, and Optimism). However, AAVE itself cannot be borrowed on the platform.
• Safety Module Staking: Users can stake AAVE in the Safety Module to act as a backstop for the protocol. In exchange for assuming the risk of a "Shortfall Event" (where staked tokens may be slashed to cover protocol deficits), stakers receive rewards.
• GHO Stablecoin: Aave Governance controls GHO, an overcollateralized stablecoin. AAVE holders can influence GHO's management, and stakers in the Safety Module may receive discounted rates or specific incentives related to GHO.

Incentive Programs:

• Safety Incentives: As of April 2024, 820.00 AAVE are distributed daily pro-rata to users who have staked in the Safety Module.
• Liquidity Mining: Historically, Aave used stkAAVE to incentivize supplying and borrowing on V2 markets. While many of these programs (such as those on Ethereum V2) ended in May 2022, various incentives continue to be approved for V3 markets on networks like Metis, Optimism, and Polygon.
• Grants: The Aave Grants DAO provides funding for contributors. "Rapid Grants" (under $20,000) are reviewed by a committee, while "Community Grants" (over $80,000) require a Snapshot vote.

Locking Mechanism

The primary locking mechanism is the Safety Module. When users stake AAVE, they receive stkAAVE, an ERC-20 token representing their staked position. This process "locks" the AAVE to provide security for the protocol.

Additionally, the protocol features a "Cooldown Period" for unstaking. Users cannot immediately withdraw their AAVE from the Safety Module; they must first trigger the cooldown and wait for it to expire before they can claim their underlying tokens.

Unlocking Time

The unlocking process for staked AAVE is governed by specific time parameters:

• Cooldown Period: As of April 15, 2024, the cooldown period is set to 20 days. This duration can be adjusted through Aave Governance.
• Claim Window: Once the 20-day cooldown period ends, users have a 2-day window to claim their tokens. If the tokens are not claimed within this 48-hour window, the user must restart the entire cooldown period to attempt another withdrawal.
• Historical Vesting: The original LEND tokens for the team and early contributors featured a two-year vesting schedule with bi-annual unlocks, though the majority of the current supply is now circulating. As of early 2024, the circulating supply is approximately 14.9 million AAVE.