Aave, a decentralized finance (DeFi) protocol, has proposed a major update to its economic framework. The proposal includes the establishment of the Aave Finance Committee (AFC), which will oversee financial allocations and manage a six-month AAVE buyback program to enhance token value and ecosystem sustainability. The AFC will also consolidate staking and liquidity management under a new system called Umbrella to optimize capital efficiency and provide protection against bad debt. Additionally, Aave plans to finalize the transition from its original governance token, LEND, to AAVE, and launch a new rewards mechanism called Anti-GHO to improve incentives for stablecoin holders.



Other News from Today