Home
News
Marc Zeller, the founder of Aave Chan Initiative, hinted at a vote on distributing fees to Aave stakes soon due to Aave’s profits.
Aave, the decentralized lending platform, could soon vote on whether to distribute fees to holders by turning on a ‘fee switch’, as per a post on X from Aave Chan Initiative founder Marc Zeller. The current net profits of the Aave DAO are about $60 Million per year, reflecting five years of operational costs, as noted by Zeller
Who Is Marc Zeller?
Marc Zeller is the creator of the Aave Chan Initiative (ACI), a service provider for the Aave DAO. His involvement in the cryptocurrency ecosystem began in 2015 when he co-founded Ethereum France and arranged the EthCC conference in Paris.
In 2019, he played a pivotal role in launching Aave and joined EthLend to plan for Aave V1 in 2020. In 2022, Marc founded the ACI, which now employs a skilled team of seven. The innovative products of ACI such as Skyward, Orbit, and Dolce Vita are quite popular.
Marc Zeller’s Post
Marc Zeller teased that a temperature check vote on distributing fees to Aave stakes could come as soon as next week, given Aave’s profits. A potential ‘fee switch’ activation could be the next step for Aave (AAVE), following similar moves by other DeFi protocols, to distribute DAO profits to token holders.
According to a post by Marc Zeller Aave may hold a vote next week on activating the switch to benefit AAVE token holders, after highlighting the platform’s financial health.
A good example is Morpho currently.
— Marc “Chainsaw” Zeller 👻 🦇🔊 (@lemiscate) March 24, 2024
As they run out of money, they're currently in everyone's DMs waiving a deck and trying to hide the fact 89% of their TVL earn 0$, and Merit, as expected, took 30% off their deposits in a week.
Aave DAO earns per day what they earned so far
Zeller wrote, “A new version of the safety module will propose to the governance to distribute fees to stakers” on March 16.
What Will Happen If Aave DAO Activate Fees
If Aave DAO decides to activate fees, it will follow decentralized stablecoin protocol Frax Finance, which recently voted in favor of a proposal to reimplement its own fee switch. Meanwhile, Uniswap, a decentralized exchange, is in the final stages of preparation for its own fee switch proposal. This is expected in mid-April following a successful temperature check.
According to Zeller, Aave’s Treasury currently holds $50 Million worth of cash equivalents for 2.5 years of operational costs, with net DAO profits at approximately $60 million per year. Zeller had previously announced that he would publish a “temp check to fee switch Aave stakers” once 100 million GHO were minted.
The proposed fee switch follows Aave’s recent proposal to adjust the risk parameters of the DAI stablecoin. Earlier this year, the Aave DAO approved the staking fee adjustments for its stablecoin GHO, aiming to maintain the token’s peg stability.
If the vote is successful, Aave will join the ranks of DeFi players like Frax Finance, whose community recently approved a proposal to activate their fee switch.
Summary
Marc Zeller, creator of Aave Chan Initiative (ACI), announced a potential ‘fee switch’ activation for Aave (AAVE) to distribute profits to token holders. This follows Frax Finance’s recent proposal to reimplement its fee switch.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of monetary loss.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
