Aave Community Suggests Adding eUSDe To Aave V3 Core Instance In New Proposal
In Brief
Aave community has introduced a temperature check proposal to integrate eUSDe into the Aave V3 core instance in order to assess community sentiment.
Aave Chain Initiative (ACI), which focuses on growth and business development for the decentralized finance (DeFi) lending protocol Aave, has introduced a temperature check proposal to integrate eUSDe into the Aave V3 core instance. This proposal serves as an initial step in assessing community sentiment before moving forward with a full governance vote.
eUSDe is a token representing deposits in Ethereal, a soon-to-launch perpetual futures exchange backed by DeFi protocol Ethena. Holding eUSDe allows users to accumulate both Ethereal Points and Ethena Points, with Ethereal Points tracking participation in Ethereal’s ecosystem and Ethena Points offering additional incentives at a 30x multiplier. This incentive structure has contributed to strong borrowing demand for eUSDe on Aave, as users seek to maximize their rewards through point farming.
Integrating eUSDe into Aave V3 presents several potential advantages, including a new market opportunity and the potential for a substantial increase in total value locked (TVL) within the protocol. Importantly, listing eUSDe is not expected to cause market instability beyond the anticipated rise in borrowing demand. Additionally, Ethena Points distribution for eUSDe deposits will remain consistent with that of USDe deposits, ensuring parity in incentives.
Further discussions regarding protocol-owned liquidity (POL) and deposit commitments will take place at the Aave Request for Comments (ARFC) stage, providing additional details on how eUSDe’s integration will be structured.
If the temperature check proposal gains consensus, it will proceed to the Snapshot stage for a broader community vote. If the Snapshot vote is favorable, the proposal will advance to the Aave Request for Comment (ARFC) stage, where a formal ARFC will be published. This stage allows the community and relevant service providers to review and provide feedback. Following this, the proposal will move to the ARFC Snapshot stage for another round of voting. If this vote also results in approval, an Aave Improvement Proposal (AIP) will be published for a final vote, determining whether the proposal is officially implemented and enforced.
Aave V3 Core Instance: The Backbone Of Protocol Operations And Liquidity Management
Aave is a decentralized, non-custodial liquidity market protocol that enables users to either supply assets or borrow funds. Liquidity providers contribute assets to the platform and earn passive income through interest generated from loans. Borrowers can access funds through various mechanisms, including perpetual borrowing and one-block liquidity, allowing for greater flexibility in decentralized finance.
The V3 Core Instance serves as the foundational contract managing Aave’s protocol operations, including asset handling and transaction execution. It plays a crucial role in maintaining Aave’s ecosystem, integrating advanced features such as cross-chain functionality and improved capital efficiency to enhance user experience and liquidity management.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
