Aave Proposes Strategic Collaboration With Instadapp Through INST Token Investment in a New Initiative
In Brief
Aave has introduced a proposal for a cooperative venture with Instadapp, which includes a substantial $4 million investment in INST tokens to foster collaboration between the two platforms.
The community that backs the decentralized finance (DeFi) lending platform, Aave has put forth a proposal to create a strategic alliance between Aave DAO and Instadapp . This collaboration involves a $4 million investment in INST tokens, reflecting a fully diluted valuation (FDV) of $350 million. The aim is to bolster cooperation and alignment between both protocols.
Instadapp has played a crucial role within the Aave ecosystem, providing essential infrastructure and user-friendly interfaces. With Instadapp preparing to launch its new tokenomics and rebranding, there's a perfect chance to deepen strategic ties. The proposed collaboration is designed to yield mutual advantages, including promoting the adoption of GHO via Fluid integration, ensuring dedicated support for integrations with the Aave protocol, and nurturing governance cooperation between the two systems.
The proposal outlines several pivotal elements: Aave DAO is set to be a launch partner for Instadapp’s rebranding and tokenomics overhaul. The DAO and its affiliated services will observe a stringent non-hostility policy in public communications concerning the offerings and team of Instadapp. Furthermore, Aave DAO will actively advocate and endorse Instadapp products that are integrated with the Aave protocol, including GHO and Fluid functionalities. This initiative will entail bespoke support, such as providing free flash loans to the Instadapp platform to enhance its integration efforts.
To further unify the protocols, Aave intends to acquire $4 million worth of INST tokens using GHO. A section—up to one-third—of these INST assets will be utilized to bolster GHO pairs on Fluid via Merit. The remaining tokens will be distributed over a year, with governance delegated to the Aave Protocol Embassy for robust participation in Fluid governance.
Considering the pressing nature of this proposal, it's recommended that the transaction proceed through a direct-to-AIP (Aave Improvement Proposal) decision. This methodology would facilitate the allocation of $4 million in GHO from the treasury for acquiring INST tokens, with ACI orchestrating the transaction. The AIP would also include a whitelist for Instadapp to allow access to flash loans.
Aave Protocol Now Empowers Users to Supply and Borrow rsETH on the Aave V3 Ethereum Market
The Aave Protocol is a decentralized, non-custodial liquidity platform enabling users to engage as suppliers, borrowers, or liquidators. The backbone of this protocol is the AAVE token, which functions as a governance asset, allowing holders to partake in decision-making while also providing financial incentives.
Recently, it was revealed that users are now able to supply and borrow rsETH, Kelp DAO’s liquid restaking token, on the Aave V3 Ethereum market. Additionally, individuals who deposit rsETH into Aave will earn Kelp Miles and EigenLayer points, offering them extra rewards and incentives for their involvement.
Disclaimer
In line with the Trust Project guidelines , please be advised that the information presented here is not designed to be taken as legal, tax, investment, financial, or any other form of advice. It's crucial to only invest what you can afford to lose and seek independent financial consultation if needed. For additional insights, we recommend checking the terms and conditions as well as the help and support sections provided by the issuer or advertiser. MetaversePost strives for accurate and impartial reporting, but market conditions can change unexpectedly.