The Aave improvement proposal passed, what is the difference between AAVE and LEND?

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The Aave improvement proposal is passed and the platform token LEND will be converted to AAVE. What is the difference between AAVE and LEND?

A few days ago, the DeFi lending protocol Aave launched a new governance framework on the Ethereum mainnet and passed the Aave Improvement Proposal (AIP1) unanimously yesterday: It is expected that the Aave platform token LEND will be increased to 100 on October 3 (block height 10978863). The ratio of :1 is converted to AAVE.

For Aave, Sean has always been concerned, the current value of locked assets on Aave is $1.46 billion, second only to Uniswap and Maker, ranking third. This result is quite eye-catching in DeFi, so after Aave converts the platform token from LEND to AAVE, what are the benefits to the Aave ecology?

According to Sean, the upcoming AAVE, in addition to participating in community governance like LEND, has a new feature:

Users can pledge AAVE tokens to the "security module" of the protocol to serve as insurance in the event of platform problems. Simply put, Aave's security module can use up to 30% of the locked assets to make up for the deficit when the platform has problems.

Of course, users who pledge AAVE into the security module can get a certain security incentive. The initial safety incentive is 400 AAVE per day.

It should be noted that if the user wants to take out the AAVE pledged in the security module, the cooling period must be activated (the default is 7 days, or it may be extended due to community governance) before subsequent operations can be performed.

Shaun believes that the competition in the DeFi field is becoming more intense, and all DeFi projects are seeking innovation while stabilizing, hoping to break through their own iterative development. For example, Aave talked about today, its security module can provide new application scenarios for AAVE, and it can also form a certain support for its value.



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