Aave Community Approves Proposal To Acquire 5 Million CRV

• The Aave community has passed a proposal to acquire 5 million CRV using USDT from the Aave DAO treasury. 
• The aCRV OTC Deal aims to support the DeFi ecosystem following the recent instability induced by the Curve exploits. 
• The DeFi protocol also plans to use the CRV tokens to incentivize liquidity for its native stablecoin GHO.
• The community is voting on two other proposals that seek to limit the protocol’s exposure to CRV. 

The community behind the leading DeFi lending protocol Aave has voted in favor of a governance proposal that seeks to acquire 5 million Curve DAO Tokens (CRV). The community was visibly divided over the proposal, with more than 42.19% of the votes against the CRV acquisition deal. However, nearly 58% of the community voted to proceed with the deal, which is expected to be implemented within 24 hours. 

Aave To Use 2 Million USDT From Treasury To Acquire CRV

According to Aave’s governance forum, the decentralized finance protocol will use 2 million USDT from the Aave DAO treasury to strategically acquire 5 million CRV. The CRV purchase aims to support the DeFi ecosystem following the instability induced by the recent Curve Finance exploits. 

Aave DAO is also looking to position itself strategically in the Curve Wars. The Curve Wars is a competition between several DeFi protocols to secure a large portion of Curve Finance’s liquidity by ensuring that their preferred pools offer the highest CRV rewards. The allocation of CRV rewards to pools is influenced by protocols that hold the most veCRV tokens.&

Apart from supporting DeFi and strategizing for the Curve Wars, Aave is also hoping to incentivize liquidity for its native stablecoin GHO. The DeFi protocol plans to lock the CRV tokens in order to accumulate Curve voting power and support a GHO-specific gauge, which would benefit GHO secondary liquidity. 

The treasury balance and the predicted lower costs for service providers for the 2023-2024 budget would allow this strategic acquisition while maintaining a conservative stance with DAO treasury holdings.”

Aave governance forum

The community is currently mulling over two other proposals that seek to limit its exposure to CRV. The first proposal aims to reduce the liquidation threshold by 6% for CRV on Aave Ethereum V2. The proposal is poised for approval, with 100% of the votes currently in favor. The second proposal seeks to disable the borrowing of CRV on Ethereum and Polygon V3. This proposal has not been met with any resistance so far and is set to be implemented after August 13, 2023.&

You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.