Aave, an open-source and non-custodial protocol, is now counted among those DeFi projects which have transferred their governance rights to their token holders. It recently announced that the admin keys of the protocol are now transferred to the governance communities. Moreover, this migration is done under the command of its LEND utility token holders. According to the announcement, this is one of the most historic moments for the protocol and quite an important step towards decentralization.
Today marks a historic moment for the Aave Protocol: we have officially handed over the protocol admin keys to the governance, an important step towards decentralisation!
Read more about the Admin Key Handover and what this means for the protocol: https://t.co/89CxKb09rq
— Aave (@AaveAave) October 28, 2020
Aave Community Voted in Favor of Launching Migration Functionality
It is revealed that the whole community has voted in favor of the first Aave Improvement Proposal (AIP). This lead to the launch of the migration functionality from the LEND utility token to Aave’s governance token. However, there is 16 million AAVE token in the supply. Among these 16 million, 13 million could be redeemed by the LEND token holders. Now the remaining 3 million will be left with the firm as a reserve. The firm has specified that all those tokens which are either staked or are in the cold storage could be used to vote on AIPs.
Fifth-Largest DeFi Protocol by TVL
Aave was launched back in January 2020 only in such a short span, it has emerged as one of the top DeFi projects. It has seen some huge success by the mid of this year as there has been a huge surge in the DeFi sector lately. Currently, the protocol is holding more than $980 million due to which it has become the fifth-largest DeFi protocol by the total value locked (TVL). Even though it is counted among the top five DeFi protocols at the moment but it has seen some huge decline as compared to the high of August 2020. During that time, its TVL was somewhere around $1.7 billion which is 42% more than what it is currently.