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ThecoinrepublicNewsAAVE Price Rose 5% After Marc Zeller...
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AAVE Price Rose 5% After Marc Zeller Proposed ‘Fee Switch’

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.

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.

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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Adarsh Singh
Adarsh Singh
Adarsh ​​Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
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