The Aave community has proposed a new initiative to bring eUSDe into the core framework of Aave V3, according to Metaverse Post.
In Brief
To better engage the community, Aave has launched a preliminary proposal for adding eUSDe to the Aave V3 core instance, aiming to understand members' views on the matter.
The Aave Chain Initiative (ACI) is dedicated to promoting growth and business strategies for the decentralized finance (DeFi) lending platform. Aave They have now initiated a temperature check proposal centered around the integration of eUSDe into the core framework of Aave V3, serving as an initial measure to gauge community opinion prior to a comprehensive governance vote.
eUSDe functions as a token that represents deposits in the upcoming Ethereal exchange, which is set to showcase perpetual futures backed by a decentralized finance protocol. Ethena By holding eUSDe, users can earn both Ethereal Points and Ethena Points; Ethereal Points measure engagement within Ethereal’s ecosystem, while Ethena Points provide extra incentives at a 30x multiplier. This incentivization strategy has generated significant borrowing interest for eUSDe within Aave as users strive to optimize their rewards through point farming.
Bringing eUSDe into Aave V3 could offer multiple benefits, such as opening new market avenues and potentially boosting the total value locked (TVL) in the protocol. Importantly, the introduction of eUSDe is anticipated to have minimal impact on market stability, aside from the expected increase in borrowing interest. Furthermore, the distribution of Ethena Points for eUSDe deposits will align with that of USDe deposits, ensuring equitable incentives.
Further dialogue on protocol-owned liquidity (POL) and the commitments associated with deposits will be addressed during the Aave Request for Comments (ARFC) phase, offering deeper insight into how the integration of eUSDe will take place.
If the temperature check proposal Once consensus is reached, the proposal will transition to the Snapshot stage for a wider community voting process. Should the Snapshot vote produce a positive outcome, the initiative will progress to the Aave Request for Comment (ARFC) stage, where a formal ARFC will be issued for community and service provider review. Following this, the community will engage in another Snapshot voting round. If this vote is also approved, an Aave Improvement Proposal (AIP) will be drafted for a final vote, determining whether to officially implement the proposal.
The Aave V3 Core Instance serves as the essential infrastructure for the protocol's operational dynamics and liquidity management.
Aave operates as a decentralized, non-custodial liquidity market protocol, enabling users to provide assets or borrow funds. Liquidity providers contribute their assets to the platform and earn passive income via interest accrued from loans. Borrowers, on the other hand, can access funds utilizing various methods, including perpetual borrowing and one-block liquidity, which enhances flexibility in the decentralized finance space.
The V3 Core Instance The core contract is pivotal in managing the Aave protocol’s operations, including asset management and transaction processing. It is integral to the sustainability of Aave’s ecosystem, incorporating advanced functionalities such as cross-chain capabilities and improved capital efficiency to elevate user experience and optimize liquidity management.
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